US security panel approves sale of Chicago Stock Exchange to Chinese investors
15 Dec 2016
The Committee on Foreign Investment in the US (CFIUS) has approved the acquisition of Chicago Stock Exchange Inc (CHX) by Chinese investors led by Chongqing Casin Enterprise Group, according to the US Treasury documents seen by Reuters.
In February, a consortium led by Chongqing Casin, a privately-held holding company based in Chongqing, China, agreed to buy the 134-year-old CHX. (See: Chinese investor group to buy Chicago Stock Exchange)
A concluded deal would be the first acquisition of a US stock exchange by a Chinese company.
The approval by CFIUS, comes despite many US lawmakers voicing concerns about the level of influence the Chinese state might gain over one of the oldest US exchanges, the report said.
The approval comes a week after US President Barack Obama blocked the proposed sale of California-based semiconductor firm Aixtron to a Chinese firm over national security concerns.
CFIUS had also in 2011 blocked Germany's Deutsche Boerse AG plans to buy the owner of the New York Stock Exchange, but last month approved state-owned China National Chemical Corp's plan to buy Swiss seeds and pesticides giant Syngenta AG for $43-billion.
"We are pleased with the CFIUS findings that there are no unresolved national security concerns with respect to the proposed transaction between the Chicago Stock Exchange and the multinational investor group," CHX told Reuters in a statement.
The Chicago Stock Exchange, a subsidiary of CHX Holdings Inc, is minority-owned by a group including, E*Trade Financial, Bank of America, Goldman Sachs, and JPMorgan Chase & Co.
These minority shareholders had also agreed to sell their stake.
Chongqing Casin Group is a privately held diversified holding group founded in 1997 focused on real estate development, environmental protection industry investment and operation, financial holdings and municipal infrastructure investment and construction.
It has 821 employees and has operations across China and abroad, including Beijing, Hong Kong, Sydney and other locations.
