(MENAFN) The Hong Kong stock exchange (HKEx) is set to take over 135-year London Metal Exchange for USD2.2 billion), Reuters reported.
The deal, still subject to approval by LME shareholders, underscores the global shift in manufacturing to Asia, and would give Asia's largest bourse a much-desired commodity trading platform.
For LME, the deal, if approved, would give a fast track into China, the world's biggest metals buyer, and would strengthen its position in the major market against the Shanghai Futures Exchange, which trades in base metals.
Many shareholder members who own and use the LME, which dates from a time when Britain and not China was the workshop of the world, have feared a sale might alter its unique, complex structure of futures trading and low fees, hinting the possibility of rejecting the deal.
HKEx CEO Charles Li vowed to keep the LME brand, the traditional open-outcry and the structure until at least January 1, 2015.
Until the same date HKEx will also refrain from increasing fees for contracts currently traded on the LME, beyond levels that kick in next month. HKEx said the acquisition would add to earnings after three years.
Although the LME board backed the HKEx bid, the deal could fail, as many small shareholders may oppose the bid, which has to be approved by 75 percent of shares and 50 percent of shareholders.
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