Deutsche Börse has dropped its EUR9 billion takeover bid for Euronext, clearing the way for the pan-European exchange to complete a transatlantic merger with the New York Stock Exchange.
In a statement Deutsche Börse says it will no longer pursue a merger with Euronext and will "stop all preparatory steps including the regulatory and merger control processes".
The Frankfurt-based exchange launched a re-vamped bid for Euronext in June after the Paris-based market operator had already agreed a $10 billion merger deal with Nyse.
The Börse later altered its proposed offer to include concessions on technology and clearing. More recently the German exchange said it was teaming with Borsa Italiana on creating a federal pan-European exchange that would include Euronext. But last week the Börse said talks with the Italian market operator had fallen through.
In today's statement, the German exchange says despite vocal support for its bid from European politicians, stakeholders and regulators, Euronext management did not reopen talks.
Reto Francioni, CEO, Deutsche Börse, says: "We have invested time and commitment but it is part of our responsibility to recognise when further effort doesn't make sense."
The Börse also says that recent share price developments mean that a combination with Euronext would not be attractive to its shareholders.
Looking ahead the German exchange says it expects to take "an active role in the consolidation process" in Europe and beyond.
Last year Deutsche Börse ditched a proposed £1.35bn bid for The London Stock Exchange (LSE) after facing increasing opposition to its takeover plans from its own shareholders.