NZX strikes deal to buy M-co

Stock exchange operator NZX has reached a conditional agreement to buy electricity market operator M-co and hopes to settle the sale this month.

M-co, which operates markets for electricity, electricity derivatives, gas and carbon, is also half-owner and operator of fellow exchange company Unlisted.

The companies had not reached a deal over M-co's interests in Unlisted, and Unlisted's other shareholders were likely to be included in discussion over the issues in the near future.

"There are strong strategic and operational synergies between NZX and M-co," NZX chief executive Mark Weldon said.

"A particular focus will be bringing that expertise together to work on developing a liquid hedge market for New Zealand electricity."

NZX gave no indication of price, but said it planned to fund the acquisition through a mix of debt and equity.

The purchase was conditional on completion of due diligence and finalisation of a sale and purchase agreement.

- NZPA