(In 3rd paragraph, corrects how long trading floor will stay
open to at least six months instead of at least three years.)
CHICAGO Oct 17 CME Group Inc has agreed to buy
smaller rival the Kansas City Board of Trade for $126 million in
cash, augmenting its range of grain contracts.
The Kansas City Board of Trade, which offers futures on hard
red winter wheat, will make a special distribution of excess
cash to members when the deal closes, CME said in a statement.
As part of the deal, CME has agreed to keep the Kansas City
market's trading floor open for at least six months.
CME owns the Chicago Mercantile Exchange, the Chicago Board
of Trade, and the New York Mercantile Exchange.
The acquisition, expected to close later this year, will be
CME's first of a rival exchange in five years.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama)