Bids for the London Metal Exchange Due Monday

LONDON – The fight for the London Metal Exchange is entering its final round.

Bidders have until Monday to make an offer for the exchange, which handles roughly 80 percent of global futures trading for commodities like aluminum, copper and zinc. A deal could be valued at roughly £1 billion, or $1.6 billion.

The potential acquirers are some of the world’s largest exchanges, which are battling for control over the the exchange’s dominant position in many of the world’s commodities markets. They are expected to include CME Group, IntercontinentalExchange and NYSE Euronext, according to people with direct knowledge of the matter. Hong Kong Exchanges and Clearing, one of the world’s largest financial exchanges based on market capitalization,, also confirmed on Monday that it was considering a bid for the the London exchange.

While a lucrative bid may entice the exchange’s board to accept an offer, many of the exchange’s 93 members, which collectively own the bourse, could still voice opposition. Many of the exchange’s shareholders are stand-alone metal trading firms that could face increases in trading fees if the exchange is sold. Faced with the potential of rising costs, analysts say firms may band together to block a proposed deal.

A lot will depend on JPMorgan Chase and Goldman Sachs, which own a combined 20.4 percent stake in the exchange. Under British law, any potential acquirer must have the backing of at least 75 percent of the exchange’s shareholder votes. As the exchange’s largest shareholders, the two American banks hold a strong position during negotiations.

The London-based exchange, which was founded 135 years ago, is expected to make an announcement on the bidders on Tuesday, and the company’s board is likely to make a final decision by the end of May, said one person, who spoke on the condition of anonymity because the discussions were private.