Today, the NYSE Group, Inc. (NYSE:NYX) continued to feed its voracious appetite for deals. The latest: A $115 million investment in the National Stock Exchange (which is the largest in India). According to the Wall Street Journal, (subscription required) this represents about a 5% equity stake.
Not long ago, the NYSE's CEO, John Thain, indicated that he was interested in Asia. So, expect more deals to come.
By the way, there were other investors, including General Atlantic (which is a private equity firm and a major shareholder in the NYSE), SoftBank and Goldman Sachs (where Thain was formerly employed.).
No doubt, these investors would like to buy much more. But India has very strict regulations on foreign ownership.
Yes, the National Exchange has been growing significantly, with listings such as Wipro, Infosys and Tata Motors.
Thus, the infusion of capital should help scale the operations, as well as bring expertise. And, in the process, probably be very lucrative for General Atlantic, SoftBank and Goldman Sachs.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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