Brazil BM&F and Bovespa in talks for integration

SAO PAULO, Feb 19 (Reuters) - Brazil's Bolsa de Mercadorias e Futuros (BM&F) and Bovespa Holding SA, the Sao Paulo Stock Exchange, said late on Tuesday they are in talks for a possible integration of activities.

"The companies have begun exclusive talks with the aim of integrating their activities," the exchanges said in a joint regulatory filling, adding that the exclusive negotiation could last for up to 60 days.

BM&F (BMEF3.SA: Quote, Profile, Research, Stock Buzz), the world's fourth-largest commodities and futures exchange, raised 5.98 billion reais ($3.33 billion) in an initial public offering (IPO), in November.

In the previous month, Bovespa (BOVH3.SA: Quote, Profile, Research, Stock Buzz) had sold 6.63 billion reais worth of shares in Brazil's biggest-ever IPO.

Financial conditions of a possible deal have not been defined yet as talks are still preliminary, the exchanges said.

The integration would take place amid a consolidation of exchanges around the globe.

NYSE Group, which runs the New York stock exchange, bought European exchange operator Euronext for $14.6 billion last year. London Stock Exchange Plc has acquired Italian rival Borsa Italiana, and Nasdaq Stock Market Inc has made a series of deals, buying the Philadelphia and Boston stock exchanges and Nordic market operator OMX. (Reporting by Inae Riveras; Editing by Gary Hill)