Shearman & Sterling is advising InterContinentalExchange, a leading operator of global regulated futures exchanges, clearing houses and over-the-counter markets, in connection with its agreement to acquire a 79.12% interest in the derivatives and spot natural gas business of APX-Endex from N.V. Nederlandse Gasunie, the European gas infrastructure company, for an undisclosed sum.
In connection with the transaction APX-Endex will reorganise its current combined gas and power business into two operations: a power spot and clearing business and a derivatives and gas spot business which will be spun off to Gasunie. Completion of the acquisition will enable ICE to further develop a highly liquid and efficient continental European platform for hedging and trading in the gas and power markets, as well as providing intra-day and balancing mechanisms for the Title Transfer Facility Virtual Trading Point in the Netherlands, the Zeebrugge Trading Point (to launch at the end of September 2012), the UK On-the-Day Commodity Market and other spot gas markets.
The acquisition, which is subject to regulatory approvals and certain closing conditions, is expected to be completed during the first quarter of 2013.
The Shearman & Sterling team of lawyers in the firm’s London office is being led by M&A partner Laurence Levy, assisted by senior associate Simon J. Little and associate Blake Spencer. Partner Thomas Donegan and associate Mark Dawson are advising on financial regulatory issues. Competition law advice is being provided by partner Matthew Readingsand associate George Milton. Partner Iain Scoon and counsel Simon Letherman are advising on tax. Employment advice is being provided by counsel Sam Whitaker. ICE is being advised by Loyens & Loeff N.V. with respect to Dutch law matters.
Shearman & Sterling has a longstanding relationship with ICE having advised on the launch of its over-the-counter foreign exchange clearing facility, its takeover of Climate Exchange plc, the setting up of ICE Clear Europe and the launch of its credit default swaps clearing service as well asInterContinental Exchange Inc’s acquisition of The Clearing Corporation and its formation of a US CDS clearing house.
