The British Competition and Markets Authority has concluded that a complete divesture is the only way to maintain competition in crucial energy markets after ICE's $650M acquisition of the energy trading platform Trayport. We expect this to begin a long dispute process, with numerous parties - both regulators and competitors - weighing in.
The UK Competition and Markets Authority (CMA) has selected the forced sale option to reverse Intercontinental Exchange’s $650 million takeover of the commodities trading software company Trayport, as the watchdog decided the deal undermines competition. The US-headquartered group refused the British competition watchdog’s divestiture ruling, saying it is disappointed with the decision and would consider an appeal. ICE beat arch-rival CME Group to buy the broker-tech platform licenser just ten months ago, but the UK`s competition authority now believes a complete divestiture is the only effective remedy to the substantial lessening of competition. Earlier in August, the CMA highlighted that ICE’s $650 million investment in Trayport could hurt competition for wholesale European utilities trades, where Trayport’s software helps facilitate 85 per cent of activates.