Chicago Stock Ex­change bid clears na­tional se­cu­rity review

China Daily (Hong Kong) - - BUSINESS - By BLOOMBERG

The Chicago Stock Ex­change has cleared a ma­jor hur­dle as it at­tempts to sell it­self to a Chi­nese-led in­vest­ment group.

The Com­mit­tee on For­eign In­vest­ment in the US, known as CFIUS, on Wednesday ap­proved the ex­change’s pro­posed sale to Chongqing Casin En­ter­prise Group Co and others, said Drew Mauck, a spokesman for the Chicago Stock Ex­change. Signed in Fe­bru­ary, the deal is still sub­ject to ap­proval by the US Se­cu­ri­ties and Ex­change Com­mis­sion.

The Chicago Stock Ex­change is at­tempt­ing the sale at a po­ten­tially fraught time for busi­ness re­la­tion­ships be­tween the US and China. CFIUS scru­ti­nizes pur­chases of US com­pa­nies by for­eign buy­ers to iden­tify na­tional se­cu­rity is­sues, and there was no guar­an­tee that it would ap­prove the pro­posed sale.

Ear­lier this month a Chin­abased group’s at­tempted takeover of Ger­man semi­con­duc­tor- equip­ment sup­plier Aix­tron SE crum­bled as US Pres­i­dent Barack Obama moved to block the deal on the grounds of na­tional se­cu­rity risk.

A sub­sidiary of CHX Hold­ings Inc, the Chicago Stock Ex­change is the sec­ond-small­est stock ex­change in the US, han­dling less than 0.5 per­cent of eq­uity vol­ume. Even so, the ex­change would pro­vide a foothold in the $25 tril­lion mar­ket for US equities, and could be­come a place for Chi­nese com­pa­nies to list.

The takeover bid was val­ued as less than $100 mil­lion, Bloomberg News re­ported when an agree­ment was signed. If the sale suc­ceeds, it would be the first time a Chi­nese com­pany pur­chased a US ex­change op­er­a­tor.

the share of eq­uity vol­ume that is han­dled by the Chicago Stock Ex­change

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