CME Group and S&P Global have agreed to sell OSTTRA, their joint venture, to investment funds managed by KKR for an enterprise value of $3.1 billion. This significant divestiture allows both companies to monetize their investment in the post-trade services provider. The transaction is subject to customary purchase price adjustments.
The proceeds from the sale will be divided evenly between S&P Global and CME Group, pursuant to their 50/50 joint venture agreement. This capital infusion provides CME Group with substantial financial resources. It can be used for strategic investments, debt reduction, or further capital returns to shareholders.
The sale of OSTTRA represents a strategic move to optimize CME Group's portfolio and focus on its core derivatives marketplace business. While OSTTRA was a successful venture, this divestiture allows CME Group to reallocate resources. It enhances the company's financial flexibility and strategic agility.
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