Reaction of U.S. Rep. Judy Biggert to Today's Vote on Proposed Merger of Chicago Mercantile Exchange and Chicago Board of Trade
U.S. Rep. Judy Biggert (R-IL-13th) today joined Chicago-area investors in applauding a landmark merger agreement between the Chicago Board of Trade (CBOT) and Chicago Mercantile Exchange (CME). By a wide margin, shareholders of the CBOT voted this afternoon to accept the CME's latest offer to unite the two companies. Once finalized, the merger will solidify Chicago's status as home of the world's largest derivatives exchange market.
"This is truly a historic occasion," said Biggert, a senior member of the House Financial Services Committee, "The merger of these great Chicago institutions is not only significant for shareholders, it is expected to be a major boon to the local financial service industry."
Support for the merger gained momentum last month when it was approved by the U.S. Justice Department's antitrust division. On Friday, the CME increased its offer prompting endorsement of the deal by the CBOT's largest shareholder, Caledonia Investments Pty. Ltd. CME's closest rival bidder was an Atlanta-based firm with operations in London and New York.
Following on the heels of several major exchange mergers in April and January, this latest deal was praised by Biggert as an important step towards remaining competitive in the global market. In addition to an increase in market share, CME and CBOT stakeholders hope to capitalize on new opportunities afforded by the agreement in terms of both cost-savings and growth.
"Investors in my district are very excited to see this deal move forward. It will ensure that Chicago remains a major center for global commerce for years to come," said Biggert, whose suburban district is home to many among Chicago's financial workforce. "Promoting U.S. competitiveness remains a key challenge for policy makers, but if we can keep pro-growth policies in place and taxes down, I am confident that American families will continue to reap the benefits."
As evidence of U.S. economic strength, Biggert pointed out that June marked the 46th month of uninterrupted growth in U.S. employment. According to a report issued last week by the Department of Labor, American business added 132,000 new jobs in June, bringing the total since August 2003 to 8.2 million.