Singapore Exchange in exclusive talks to acquire Baltic Exchange

Singapore Exchange Limited (SGX) has entered into exclusive discussions with the Baltic Exchange Limited (Baltic) regarding an offer for the Baltic.

As disclosed by the Baltic Exchange, the signing of this exclusivity agreement follows discussion with a number of interested parties.

Other bidders included CME Group (CME.O), ICE (ICE.N) and Platts, according to Reuters.

“The Baltic’s Board considers that SGX has made an attractive proposal that has the potential to enhance significantly the position of the Baltic, serving the needs of Baltic members, shareholders and other stakeholders. The next phase will be to continue detailed discussions with SGX and consult with Baltic stakeholders before making a final recommendation,” the exchange said.

Key aspects of the SGX proposal include commitments to retain the Baltic’s headquarters in St Mary Axe, London and maintain its position within the global shipping community; broaden the Baltic’s existing presence in Asia utilising SGX’s strong regional distribution network; preserve the Baltic’s current ethos as a membership organisation with member representation whose market activities are governed by the Baltic Code and maintain membership subscriptions and data fee levels for members for five years.

Other proposals by the suitor include to retain the multiple clearing house model; sustain the existing market benchmark production and governance model; hold SGX clearing fees for FFA contracts at current levels for at least five years and continue to provide a broad range of membership services including dispute resolution, social and charitable activities.

The Baltic Exchange and SGX are scheduled to meet with shareholders and the wider stakeholder community of members and key industry participants over the coming weeks to explain the terms of the proposal and “build a consensus of support”, before presenting a definitive agreement which can form the basis of a Board recommendation to shareholders.

“SGX has indicated that in the event its bid is successful, it would maintain the current model for the Baltic business and our presence and building in London, as the platform for the Baltic’s future growth. The proposed transaction would further strengthen the links between London and Singapore, two of the world’s leading maritime business hubs, to the benefit of all,” Chairman Guy Campbell said.


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