US exchanges start takeover talks

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CME, owner of the Chicago Mercantile Exchange, is in talks to buy Nymex, the parent company of the New York Mercantile Exchange for $11bn (£5.5bn).

The two firms said in a joint statement that CME was proposing to offer $119 per Nymex share in cash and CME stock.

The two exchanges added that they had agreed to an exclusive negotiating period of 30 days.

Both exchanges trade in commodities, with New York dominant in crude oil, while Chicago focuses on farm products.

Nymex announced in August last year that it was in talks over a possible takeover, but the suitor in that case was not named and the discussions came to nothing.

Analyst Tom Bentz of BNP Paribas said everyone expected Nymex to join with a rival "at some point".

CME said that if any formal takeover went forward, it would maintain trading in New York.

Nymex shares were up 6% in early Monday trading in New York.