DOW JONES NEWSWIRES
CME Group Inc. (CME) and Dow Jones & Co. launched their
index venture, combining CME's expertise in index derivatives and
Dow Jones's benchmark indexes.
The companies agreed to the venture in February. The business
will own Dow Jones' stock-indexing business, including the
114-year-old Dow Jones Industrial Average.
"Together, we expect to create new opportunities for our
customers by developing innovative new products and expanding our
market data dissemination services to our global network of clients
and exchange partners," said CME Chief Executive Craig Donohue.
CME has a 90% ownership interest, with the rest owned by Dow
Jones, the publisher of this newswire and a unit of News Corp.
(NWSA).
Dow Jones will contribute the business, valued at $675 million,
while CME will contribute market data services, valued at $607.5
million, to the joint venture. The venture issued $612.5 million in
senior notes due 2018, which will be used to pay $607.5 million to
Dow Jones.
CME shares were up 0.4% at $312.20 in after-hours trading, while
News Corp.'s class A shares were flat at $14.02.
-By Jay Miller, Dow Jones Newswires; 212-416-2355;
jay.miller@dowjones.com