NZX to buy Australia's Clear Grain Exchange

New Zealand exchange operator NZX Ltd. said it has agreed to buy Melbourne-based Clear Group Ltd., owner of the Clear Grain Exchange.

"This is in the form a purchase of the assets of Clear Group, comprising in particular, Clear Commodities, the Clear Grain Exchange and Clear Interactive, the technology developer of the Clear Grain Exchange," NZX said in a statement.

The initial purchase price will be about A$6.4 million (US$5.6 million) in cash. If significant trading volumes are achieved over a three-year period, the increasing value of the grain platform will be recognized and an additional unspecified payment made.

Clear Grain Exchange is the Australian grain industry's only full-service electronic market for the trading of grain, NZX said.

NZX Chief Executive Mark Weldon said NZX was a strategic fit with Clear Grain Exchange, joining NZX's agricultural data and market information assets.

"This transaction brings together two key components of NZX's strategy: trading of agricultural commodities and acquiring technology development expertise to grow markets."

The transaction will be completed at the end of this month.