NEX Group Share News (NXG)

LONDON (Alliance News) - US-based exchange operator CME Group Inc on Friday confirmed a preliminary acquisition approach for NEX Group PLC, and said it is currently undertaking a due diligence process to determine whether a firm offer can be made for the UK electronic trading firm.

"CME and NEX currently are working together to allow CME to complete due diligence and determine whether a firm offer can be made. As a result, there can be no certainty that any firm offer will ultimately be made for NEX, nor in relation to the terms on which such offer may be made," CME said, adding that it takes a disciplined approach to acquisitions with clearly defined strategic and financial objectives and an offer, if any, would have to meet these objectives.

Under UK takeover rules, CME has until April 12 to make either announce a firm offer for NEX or announce that it does not intend to make an offer,

NEX late on Thursday confirmed press reports over a preliminary takeover approach by CME. The company said discussions were at an early stage and there was no certainty over an offer

Shares in the FTSE 250-listed NEX were trading up 33% at 892 pence on Thursday, giving the company a market capitalisation of GBP3.37 billion.

ICAP - now known as NEX Group - and Tullett Prebon in June 2016 agreed for Tulett to acquire the ICAP voice broking and information business. The deal was completed at the end of December 2016.

CME Group is a US-based options and futures exchange operator, with a market capitalisation of around USD56.29 billion.