London's Liffe the prize as US exchange swoops in $8.2bn deal Analysts said that acquiring Liffe was the key reason why IntercontinentalExchange (ICE) on Thursday agreed to pay $8.2bn (5bn pounds) for NYSE Euronext, the US-based owner of Liffe. As part of the deal, ICE also gains control of the New York Stock Exchange and stock exchanges in Paris, Lisbon, Brussels and Amsterdam. However, Liffe, an exchange through which investors can make bets on the future level of interest rates, is estimated to generate about 40pc of profits at NYSE. ICE, which specialises in futures contracts tied to energy and commodity prices, said it will merge Liffe with ICE Clear Europe, its London-based business that clears derivatives trades once they are agreed. "Liffe is the crown jewel in NYSE Euronext," said Richard Perrott, an analyst at Berenberg Bank. It is "a sign that exchanges are very interested in expanding in London." The deal will see ICE pay NYSE investors $33.12 for each of their shares, 38pc higher than the price they closed at on Wall Street on Wednesday night. By combining Liffe with its own London business that helps clear derivatives trades, ICE hopes to provide tougher competition to the CME Group, the owner of the Chicago Board of Trade and America's largest derivatives market. ICE is also betting it can benefit from the increasing regulatory pressure for all derivative trades to be moved onto exchanges. "It shows that people want access to the European derivatives market and you get that through London," said Peter Lenardos, an analyst at RBC Capital Markets. ICE founder and chief executive Jeffrey Sprecher said that the company intends to float the various European stock exchanges it acquired as part of the deal. There is speculation the London Stock Exchanges are among the companies that may examine a possible bid for the European bourses. Mr Sprecher will be chief executive of the combined group, while Duncan Niederauer, the chief executive of NYSE, will be president. The deal will need approval from regulators.