China will ‘not own’ Chicago Stock Exchange
The Chicago Stock Exchange Inc said Chinese interests will control 49.5 percent of the exchange if a proposed sale of the company gains regulatory approvals. that may raise national security concerns.
News reports have suggested that the panel may be concerned over whether the Chinese government would have influence over the exchange’s owners.
The CHX representative said it expects to hear from CFIUS by the end of the year. CHX management would remain in place following completion of the deal.
According to the SEC filing, the new owners would include a Chinese company, Chongqing Casin Enterprise Group Co, which would own 20 percent of the exchange’s parent company.
The filing said other proposed owners include Chongqing Jintian Industrial Co, Chongqing Longshang Decoration Co and Raptor Group, the family office of former hedge-fund manager Jim Pallotta, which also owns part of Italian soccer team AS Roma.
US investors, the filing said, include Jay Lu, a US citizen, as well as Anthony Saliba, a board member of CHX Holdings Inc.
The CHX hopes the acquisition will help it lure Chinese companies looking to list in the United States. Lawmakers including US Rep Robert Pittenger, a Republican from North Carolina, have raised questions about the deal.
The Wall Street Journal reported that Pittenger said at a House Financial Services Committee meeting earlier this month that he had met with SEC Commissioner Michael Piwowar about the sale of the Chicago Exchange.
Piwowar “expressed some of the same concerns regarding the corruption inside Chinese firms, as well as their complacency and the lack of transparency within them,” Pittenger said according to the Journal.
Pittenger’s office did not respond to a request for comment for this story.