UPDATE 1-NYSE-owner ICE to buy commodities trading platform for $650 million

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Nov 16 (Reuters) – Intercontinental Exchange Inc, owner of the New York Stock Exchange, said it would buy commodities trading platform Trayport from BGC Partners Inc and GFI Group Inc for around $650 million in shares .

ICE said the deal would help it provide new services to European OTC energy markets, including electricity, natural gas and coal.

The exchange and clearinghouse operator said it also plans to expand the platform to cater to over-the-counter energy markets in Asia.

GFI will receive 2.5 million ICE shares as part of the transaction. ICE may replace some or all of the equity consideration with cash, BGC said in a statement.

ICE, which started as an energy exchange in 2000 and has grown through acquisitions of companies such as the New York Board of Trade, said the deal would not have a significant impact on its 2016 profits.

Trayport is a subsidiary of the GFI Group, which was acquired by BGC Partners in March.

ICE’s financial advisor is Goldman Sachs & Co and its legal advisor is Shearman & Sterling LLP. Cantor Fitzgerald & Co is financial advisor to BGC, while its legal advisor is Wachtell, Lipton, Rosen & Katz. (Reporting by Richa Naidu in Bengaluru; Editing by Saumyadeb Chakrabarty)

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