Bloomberg News

Trafigura `Concerned' About Possible LME Sale, Changes

April 24, 2012

Commodities trader Trafigura Beheer BV is “concerned” about the possible sale of the London Metal Exchange, the world’s biggest metals bourse, as it may mean changes to its operations.

“The LME serves its function very well,” Simon Collins, director and head of dry bulk commodities at Amsterdam-based Trafigura, told the FT Global Commodities Summit in Lausanne, Switzerland, today. “A possible sale of the LME concerns me as things will change,” he said. Trafigura is the second-largest independent trader in industrial metal concentrates, according to its website.

The LME, which handles more than 80 percent of industrial metals futures, will consider takeover offers made by May 7. CME Group Inc., NYSE Euronext and Intercontinental Exchange Inc. have made preliminary offers, three people with direct knowledge of the matter said in February. Hong Kong Exchanges and Clearing Ltd. is considering borrowing as much as $3 billion to back a possible bid for the bourse, according to two people familiar with the matter.

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.net


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