MINNEAPOLIS — The Minneapolis Grain Exchange (MGEX) membership has voted in favor of demutualization to proceed with Miami International Holdings (MIH) acquiring MGEX.
On Aug. 14, MIH and MGEX announced they had entered into a definitive agreement and plan of merger under which MIH agreed to acquire MGEX for a combination of cash and MIH common stock.
“We are grateful that our seat holders recognized the extraordinary opportunity afforded to us through the joining of our exchange with MIA exchange group,” said Mark G. Bagan, president and chief executive officer of MGEX. “The demutualization and merger with MIH will position us for the continued growth of MGEX.”
The merger remains on schedule and is expected to close in the fourth quarter of 2020, subject to the satisfaction of customary closing conditions and regulatory approvals.
Once the merger is complete MGEX will become a wholly owned subsidiary of MIH. MIH will continue to maintain the trading and clearing operations of MGEX, including its hard red spring wheat contract, while adding new futures products.
“The decision to demutualize shows a tremendous vote of confidence in MIH and our plans for MGEX, one of America’s oldest and most respected exchanges,” said Thomas P. Gallagher, chairman and CEO of MIH.
MGEX, established in 1881, is one of the oldest trading venues in the United States, with more than 400 seats, historically concentrated on trading in agricultural products, including hard red spring wheat contracts. The acquisition of MGEX significantly diversifies MIH’s product portfolio by immediately providing MIH with a futures exchange and clearing facility.