China firms bidding for Chicago Exchange drop out

Bloomberg

Two of the three China-based bidders for the Chicago Stock Exchange have withdrawn from the group trying to acquire the market, according to a person familiar with the matter.
Chongqing Jintian Industrial Co. and Chongqing Longshang Decoration Co. are pulling out of the deal, according to the person, who asked not to be identified discussing private negotiations. That leaves Chongqing Casin Enterprise Group Co. plus several US entities in the buyer’s group.
Will Ruben, a spokesman for the exchange at 3Points Communications, declined to comment.
The US Securities and Exchange Commission has stalled a decision on whether to let the deal go through. While staff members at the regulator endorsed the transaction in August, commissioners decided they wanted more time to think about it. Under the SEC’s structure, commissioners can overrule powers granted to staff attorneys to make decisions about the nation’s exchanges.
President Donald Trump railed against the deal on the campaign trail in 2016. A group including Representative Robert Pittenger, a Republican from North Carolina, and Senator Joe Manchin, a Democrat from West Virginia, wrote in a letter that they were troubled by the idea of a Chinese firm owning a US exchange. The exchange is seeking to have existing investors increase their stakes, which would require the company to amend its application for the deal to the SEC.

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