London Metal Exchange Propose to Buyout Baltic Exchange


The LME has approached the Baltic Exchange for a takeover bid.


The Baltic Exchange is the world’s only independent source of maritime market information for the trading and settlement of physical and derivative shipping contracts.  The Baltic provides benchmark data such as the Baltic Dry Index, which tracks the rates for hiring bulk carriers of iron ore, grain or coal.  Shipbrokers, owners & operators, traders, financiers and charterers use the information about dry and tanker markets provided by them.

The LME( London Metal Exchange ) engages in allowing producers and consumers of metal to hedge their risks against fluctuating commodity prices.  The Hong Kong Exchanges and Clearing bought out LME in 2012 at £1.4bn.

In the recent times, many British companies are being taken over or bought by the Chinese.  For instance companies such as Weetabix to Felixstowe Docks.

Recently, George Osborne, UK’s chief financial minister, approached China with a proposal for Chinese investment in new UK nuclear power stations, bid for HS2 rail supply contracts as well as a proposal to connect the London and Shanghai stock exchanges.

CEO of the Baltic Exchange, Jeremy Penn, refused to comment on the speculations of any takeover bids on offer.  He, however, announced his plans to step down from his role in 2016.  He has held the post for the past ten years.  In September, the Baltic announced its intention to pay out almost £10m in dividends to its 380 shareholders.  The Baltic that used to be a vital location for ships to be chartered still retains City cachet and has been previously approached by the LME.

The Hong Kong Exchanges and Clearing also partner with Shanghai and Shenzhen stock exchanges to regulate stock market trading in Hong Kong.

Source: The Guardian


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