NYSE Euronext picks MCX's 5 pc stake worth Rs 220 cr

Mumbai, Feb 15 (UNI) NYSE Euronext, world's leading and most liquid exchange group of New York, today signed an agreement with India's largest commodity exchange Multi Commodity Exchange (MCX) to buy its five per cent stake amounting to Rs 220 crore (USD 55 mn).

Financial Technologies India Ltd (FTIL), which controls the MCX, and NYSE Euronext jointly today said that they expect to complete the deal in the first half of 2008.

Speaking at the occasion, President and Co-chief Operating Officer of NYSE Euronext Catherine Kinney said, the investment was a part of the exchange's strategy to diversify its product portfolio and geographical reach.

It will be NYSE Euronext's second foray into India after buying a five per cent stake in the India's biggest stocks bourse National Stock Exchange for about Rs 460 crore (USD 115 million) last year.

MCX Chief Executive Jignesh Shah said FTIL's stake in the exchange would fall to about 32 per cent after the sale, while holdings of foreign direct investors would rise to 22 percent, after this new deal.

The money from the stake sale would be used to develop the market and related infrastructure such as warehouses, he added.

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