* Shareholders approve $2.2 billion deal
* LME CEO Martin Abbott to stay, may get 7 million pounds
* London exchange hopes to gain better access to China
By Susan Thomas and Maytaal Angel
LONDON, July 25 (Reuters) – London Metal Exchange (LME)
shareholders voted convincingly on Wednesday to accept a $2.2
billion offer by the Hong Kong bourse for the 135-year-old
British institution, underscoring a global shift in
manufacturing to China, Asia’s economic powerhouse.
Hong Kong Exchanges and Clearing Ltd (HKEx) and
the LME announced on June 15 they had agreed on an acquisition
that would give LME members a gateway to China, the world’s
biggest metals buyer. The LME is the largest marketplace for
materials such as copper, aluminium and zinc.
“The deal with HKEx, Asia’s leading exchange, will secure
the LME’s position as the world’s foremost metals trading
venue,” said Martin Abbott, chief executive of the LME, who is
set to stay on after the deal is concluded later this year and
could get up to 7.4 million pounds ($11.5 million) from a shadow
equity scheme.
The agreement marks the end of the LME’s long history as a
member-owned exchange.
At an extraordinary general meeting early on Wednesday, 64
shareholders voted yes and three voted against, the LME said.
Continued…
