China Merchants Group makes bid to buy Baltic Exchange

Sources cited by Reuters said the Baltic Exchange was approach by the group’s subsidiary China Merchants Securities. The rationale behind the Chinese conglomerate’s bid is to give China ownership of the industry benchmark indices and potentially wider access to the multi-billion dollar freight derivatives market.

China Merchants Group now joins Singapore Exchange (SGX), CME Group, ICE, Platts and London Metal Exchange (LME) in being linked to the acquisition of the Baltic Exchange.

A spokesman for China Merchants Group quoted by Reuters said if there was indeed a bid, it would be processed by one of the group’s units which are listed in various locations such as Hong Kong, Shanghai and Singapore.

On 26 February, the Baltic Exchange confirmed it has received a number of “exploratory approaches” about a possible buyout, but no firm offer has been made.

China Merchants Group, meanwhile, is working on a strategic merger with compatriot Sinotrans & CSC Group, as part of Beijing’s effort to consolidate state-owned enterprises and make them more efficient.