IntercontinentalExchange is to take over Canada's Winnipeg Commodity Exchange in a deal worth C$62.08 per share or C$40 million.
Canada's privately-held agricultural futures bourse, famed for its flagship canola contract, hired an investment bank in April to explore its strategic options in the light of ongoing consolidation among exchanges.
The WCE was the first North American agricultural futures mart to siwtch to electronic trading in 2004 when it shuttered its open outcry floor in favour of the e-CBOT system owned by the Chicago Board of Trade.
ICE says it will switch Winnipeg to its own technology platform once the deal is consummated in the fourth quarter.
ICE is currently emroiled in a tug of war with the Chicago Mercantile Exchange over the future control of the CBOT. ICE yesterday sent a letter to CBOT shareholders urging them to reject the overtures of its neighbour and vote in favour of its offer, valued at about $11.5 billion.
CBOT shareholders are set to vote on the CME's $10.2 billion bid on 9 July.
The CME has responded to ICE's letter with its own plea to CBOT shareholders. The CME says its takeover would provide additional benefits in cost savings of at least $70 million annually from trading floor and technology consolidation and a faster timescale for integration.