The European Energy Exchange (EEX), a part of Deutsche Börse Group, confirmed today that it has purchased all shares of the US futures exchange Nodal Exchange Holdings. By acquiring a full control on the Virginia-headquartered exchange, EEX hopes to further promote Deutsche Börse Group’s North America strategy.
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The EEX said earlier that the overall purchase price was in the low "three digit million dollar range" and the transaction would be completed in the second quarter. All necessary regulatory approvals were satisfied recently including the final approval of the shareholders and the CFTC, which serves as the exchange’s primary regulator. Deutsche Börse expects the deal to be immediately accretive to its net income after Nodal Exchange becomes a wholly-owned subsidiary of the Germany’s paramount exchange.
Founded in 2007, Nodal Exchange is a derivatives exchange providing price, credit and Liquidity Risk Management to participants in the North American energy markets. The regulated exchange currently offers over 1,000 contracts on hundreds of different locations, providing market participants with effective risk management tools.
Nodal Exchange is a privately held company whose owners include private equity firm DC Energy, Macquarie Energy and clean energy giant NextEra. All transactions on the exchange are cleared through its clearing house, Nodal Clear, which is a CFTC registered derivatives clearing organization (DCO).
With the acquisition of Nodal, EEX group expands its product and service offering globally with a presence in new markets and products which complements the existing portfolio. Furthermore, this deal is a further step in implementing Deutsche Börse Group´s growth strategy ‘Accelerate’.
Paul Cusenza, Chairman and CEO of Nodal Exchange, commented: “As a leading energy exchange in Europe, EEX is well positioned to contribute to our further development and provide us the opportunity to grow our current business, including natural gas, and expand into new products and geographies.”
