23 May 2017
Book a meeting today

Brussels blocks Deutsche Börse/Nyse Euronext merger

01 February 2012  |  5578 views  |  0 EU building, Brussels

As expected, European Union anti-trust officials have blocked the proposed mega-merger between Deutsche Börse and Nyse Euronext over fears that the deal would stifle competition in the derivatives markets.

Nyse and Deutsche Börse officials have engaged in a frantic last-ditch effort to salvage the deal, lobbying EU officials and world leaders at the Davos Forum last week, but have today conceded defeat.

"Deutsche Boerse and Nyse Euronext have been informed that the European Commission today has decided to prohibit their proposed business combination," the companies said in a statement. "Despite the remedies offered by the companies, the European Commission concluded that the combination would significantly impede effective competition."

European Commission antitrust chief Joaquin Almunia had demanded that Deutsche Börse and Nyse sell either the Eurex derivatives arm or Liffe if they wanted the deal to go ahead, a course of action which neither exchange was prepared to countenance.

Deutsche Börse, which has spent €80 million in project expenses during 2011 to bring about the planned merger, described the decision as a "black day" for Europe and for its future competitiveness on global financial markets.

The proposal by the two exchanges to merge in a $9.5 billion mega-deal last February set off a wave of M&A activity in the exchange trading space, as competing rivals sought to play catch-up. However, political and anti-trust issues intervened to thwart alternative combinations such as those proposed between Singapore and Australia and the London Stock Exchange and Canada's TMX.

Attention will now switch to the London Stock Exchange's proposed takeover of LCH.Clearnet (in which Nyse has expressed an interest) and the bidding war for the London Metal Exchange, as exchange chiefs in New York and Frankfurt revisit their strategic options.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

EU anti-trust chiefs prepare to torpedo Deutsche Börse/Nyse merger

EU anti-trust chiefs prepare to torpedo Deutsche Börse/Nyse merger

11 January 2012  |  4533 views  |  0 comments
Deutsche Börse and Nyse Euronext offer more concessions to regulators

Deutsche Börse and Nyse Euronext offer more concessions to regulators

13 December 2011  |  6564 views  |  0 comments
Tokyo and Osaka exchanges agree merger

Tokyo and Osaka exchanges agree merger

22 November 2011  |  4419 views  |  0 comments
European Commission probes Nyse Euronext/Deutsche Börse deal

European Commission probes Nyse Euronext/Deutsche Börse deal

05 August 2011  |  7065 views  |  0 comments
Nasdaq OMX and ICE abandon Nyse Euronext bid over DoJ concerns

Nasdaq OMX and ICE abandon Nyse Euronext bid over DoJ concerns

16 May 2011  |  7061 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit dh.comDownload the paper now

Top topics

Most viewed Most shared
Time for data-driven banking to come of ageTime for data-driven banking to come of ag...
8730 views comments | 28 tweets | 35 linkedin
Google and PayPal partner for mobile shopping by fingerprintGoogle and PayPal partner for mobile shopp...
8714 views comments | 27 tweets | 27 linkedin
Banks must get on AI bandwagon now – new Finextra researchBanks must get on AI bandwagon now – new F...
8470 views comments | 22 tweets | 31 linkedin
Twins fool HSBC voice biometrics - BBCTwins fool HSBC voice biometrics - BBC
8464 views comments | 21 tweets | 24 linkedin
DrnkPay app blocks credit cards if you've had too much to drinkDrnkPay app blocks credit cards if you've...
7470 views comments | 14 tweets | 15 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job