Does a foreign entity controlling a U.S. exchange raise security concerns?
From CNN MONEY | By Matt Egan
The 134-year-old Chicago Stock Exchange reached a deal on Friday to be acquired by a Chinese-led group of investors. The purchase by Chongqing Casin Enterprise Group is the latest U.S. investment made by China and would give the country a foothold in the vast American stock market.
The struggling Chicago Stock Exchange is a very small player in the exchange world whose presence is overshadowed by Nasdaq(NDAQ), the iconic New York Stock Exchange and newer entrants.
Terms of the Chicago acquisition were not released. Privately-held Casin Group was founded in 1997 and has investments in real estate, environmental protection, finance and other areas. The Chicago Stock Exchange is minority-owned by a group that includes Bank of America (BAC),E*Trade (ETFC), Goldman Sachs (GS) and JPMorgan Chase (JPM).
China has been on a buying spree this year. Its largest deal was a $43 billion takeover of Swiss chemicals giant Sygenta earlier this week. So far in 2016, Chinese companies have announced plans to buy 66 foreign companies worth $68 billion, according to Dealogic.
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