NYSE Euronext has signed a deal to acquire a 5% equity stake in the Indian Multi Commodity Exchange (MCX).

The 5% equity investment is the maximum equity interest permitted by foreign investors in derivative exchanges under current Indian law.

Closing of the transaction is expected to take place during the first half of 2008, subject to all relevant regulatory approvals.

“We believe that our investment in MCX will produce new business opportunities for NYSE Euronext in the commodities sector and deliver value to NYSE Euronext shareholders,” said Duncan Niederauer, NYSE Euronext chief executive officer. “This transaction underscores our long-standing commitment to India and is consistent with our strategic business goal of aligning NYSE Euronext with partners globally and diversifying our product portfolio.”

Jignesh Shah, managing director and chief executive officer of MCX also hailed the deal. “The milestone bears testament to the quality of the institution we have built where the best of India and the world converge. It is a statement on India's economic standing and we are proud to be part of it.”