Competition watchdog launches inquiry into CME takeover of Nex Group
US exchange operator CME's planned $5.5bn (£4.89bn) acquisition of London's Nex Group will be investigated by the UK's competition watchdog.
The deal, which was announced in March and is expected to be completed by the end of this year, will either be approved or referred for a more in-depth investigation by 8 November, the Competition and Markets Authority said.
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If approved, the acquisition will allow investors to access cash and futures trading and over-the-counter services through one provider for the first time.
Announcing the deal in March, CME group chairman and chief executive Terry Duffy said: "At a time when market participants are seeking ways to lower trading costs and manage risk more effectively, this acquisition will allow us to create significant value and efficiencies for our clients globally.
"As one organisation, we will be able to employ the complementary strengths of each company to serve a wider client base while diversifying our combined businesses across futures, cash and OTC products and post-trade services."
Following the acquisition, Nex chief executive Michael Spencer will join the CME board of directors and act as an advisor.
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