Chicago market agrees $11bn deal

The merger will give the combined company enormous power

One of the oldest financial exchanges in the US, the Chicago Board of Trade, has agreed a $11.9bn (£5.9bn) merger with rival Chicago Mercantile Exchange.

Shareholders in Chicago Board (CBOT) - in existence since 1848 - approved the deal, which has hung in the balance for the past four months.

Chicago Mercantile had to raise its offer three times to fend off a $11.7bn bid from IntercontinentalExchange.

Set up to allow farmers to buy grain, CBOT now trades in financial products.

The merger will create one of the largest financial exchanges in the world, allowing speculators to bet on movements in everything from government bonds and interest rates to crop and pork prices.

Experts said they expected the deal to conclude within days.

Chicago Mercantile was set up in the late 19th Century to cater for trade in agricultural products but now specialises in derivatives and other financial investments.