The Chicago Mercantile Exchange finally closed its merger with the Chicago Board of Trade yesterday, after a bidding war with the Atlanta-based Intercontinental Exchange.Competition from ICE forced CME to raise its all-share bid by $3 billion to over $11 billion, but shareholders voted to accept the CME's bid yesterday afternoon. The exchanges must now resolve the outstanding issue of membership rights in the Chicago Board Options Exchange. CBOT members will lose their rights to trade on the CBOE once the merger is completed, and will need compensation.
CBOT president Bernard Dan said the merger would leave the exchange "ready to compete in the global environment", sparking speculation of further takeovers ahead.
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