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CSCE, NYCE agree

to joint site

in NY City

NEW YORK: The Coffee, Sugar and Cocoa Exchange and the New York Cotton Exchange said Thursday they agreed to relocate from Manhattan's landmark World Trade Centre to a new building in the New York City borough.

The two exchanges had announced plans in July to build a new facility in Jersey City, N.J., across the Hudson River from their current home.

But last fall the city and state of New York offered the two commodity exchanges an incentive package worth more than $90 million to remain in Manhattan.

The Coffee exchange accepted that offer in October, leaving the Cotton Exchange to decide whether to proceed alone with the move to Jersey City.

The exchanges were were not available for further comment.

The joint announcement appeared to rule out a possible merger of the Coffee exchange with the New York Mercantile Exchange (NYMEX), which has made a $48 million merger offer to the Coffee exhcange. Last month NYMEX President Patrick Thompson said that offer was still open.

In February, the Cotton and Coffee exchanges said they had formed a committee to explore a possible merger with each other or other moves to consolidate functions. Thursday's statement hinted at a closer relationship between the two commodity exchanges. NYMEX officials were unavailable to comment on the announcement.-Reuter