IntercontinentalExchange, Inc. (NYSE: ICE), the leading electronic energy marketplace and soft commodity exchange, and WCE Holdings Inc. ("WCE Holdings"), parent of the Winnipeg Commodity Exchange Inc. (WCE), today jointly announced the closing of ICE's acquisition of WCE Holdings.
WCE is the leading agricultural commodity futures and options exchange in Canada.
The purchase price for the transaction was CDN $77.59 per WCE Holdings common share, or CDN $50 million in the aggregate. The acquisition of WCE and its agricultural product suite complements ICE's acquisition of the New York Board of Trade (NYBOT) in January 2007. ICE expects to transition WCE's products to its electronic trading platform during the fourth quarter of 2007, subject to necessary regulatory approval.
"We are pleased to begin the process of combining the strengths of the Winnipeg Commodity Exchange with ICE's global commodity markets, covering energy commodities, agricultural commodities, equity indexes and foreign exchange products," said ICE Chairman and Chief Executive Officer Jeffrey C. Sprecher. "We look forward to building on WCE's solid market position while creating value for ICE shareholders as we continue to expand our business."
WCE's Canola futures contract is the world's leading canola contract, with 2.6 million contracts traded in 2006. WCE also trades Western Barley futures and Feed Wheat futures. The exchange traces its roots back to 1887, with the founding of the Winnipeg Grain and Produce Exchange. Trading in futures contracts in wheat, oats and flaxseed began in 1904. A futures market for canola was launched in 1963, and options on futures were introduced in 1991.