Due to the shipping industry currently going through the worst market conditions seen in decades, the Singapore Exchange (SGX) is currently in exclusive talks to buy London's Baltic Exchange in a deal that could be worth around US$100 million, according to Reuters.
The Baltic Exchange owns the indexes for global shipping rates, with its Dry Bulk Index used to measure the performance of the bulk commodities market.
Loh Boon Chye, CEO of SGX, said: “Additionally, Singapore's ambition to be a global maritime hub further reinforces SGX's view of trying to do this transaction.”
Guy Campbell, Chairman of the Baltic Exchange, said in a statement: “The board considers this proposal is an exciting development for the Baltic and all the stakeholders in the markets it serves. SGX has indicated that in the event its bid is successful, it would maintain the current model for the Baltic business and our presence and building in London, as the platform for the Baltic's future growth.”
PTI previously reported that the Singapore Shipping Association had announced that they were aware of the SGX’s interest to acquire the Baltic Exchange.
The Baltic Dry Index recently climbed back up to more than 300 after falling to a record low of 290 recently.