Natural Gas Exchange Inc. (NGX), a subsidiary of TSX Group Inc., has made an offer to the shareholders of Oxen Inc. to acquire 100% of the shares of Oxen, which owns the Alberta Watt Exchange (Watt-Ex).

The principal shareholders of Oxen, who hold approximately 90% of the shares of the company, have agreed to tender their shares to the offer.

Watt-Ex provides services to support the Alberta electricity market by listing specialized contracts which allow the Alberta Electric System Operator to procure ancillary electricity services from market participants.

“With this transaction, we are supplementing our growing electricity business and acquiring a platform which allows for further growth in the energy markets,” said Peter Krenkel, president of NGX, in a news release.

“NGX has an opportunity to consolidate Watt-Ex’s operating reserves market with NGX’s forward contract trading. Combining Oxen and NGX will allow development of additional specialized energy products and will provide for concentration of liquidity for the benefit of all market participants,” Krenkel added.

The offer will remain open until September 11, and is expected to be completed in mid-September.

NGX is a leading North American exchange for the trading and clearing of natural gas and electricity contracts. It is based in Calgary.