(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 (Reuters) - 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)