Regulatory convergence pre-requisite for successful exchange consolidation
NASDAQ’s executive management team will need to carefully weigh its options on the mechanics of the proposed merger with Euronext. October 30, 2013 | Mobasher KazmiIn recent published comments of NASDAQ CEO Bob Greifield, he indicated that the group was considered to be a credible buyer of NYSE Euronext. Greifield underlined the fact that NASDAQ possesses both the capacity and expertise to manage Euronext’s various European exchanges located in select markets across the continent. Yet, as the world’s second largest stock exchange by market capitalisation positions itself to acquire Euronext, after its earlier failed bid in 2011, the question remains whether the buyout will be approved by regulators and if exchange consolidations in the current environment makes strategic business sense. Greifield remarked that NASDAQ would be remiss not to evaluate a deal for Euronext, which is slated to launch an initial public offering (IPO) in early 2014, as IntercontinentalExchange’s (ICE) takeover of NYSE Euronext is completed. He clarified that NASDAQ would not launch a pre-emptive bid ahead of the IPO and it remains too early to determine if NASDAQ would pursue European exchanges being spun off from NYSE Euronext. Elmer Funke Kupper, Australia Stock Exchange (ASX) CEO, publicly announced his support for NASDAQ’s merger bid, by arguing, “Why wouldn’t NYSE Euronext and NASDAQ be together?” Kupper opined that the in-market consolidation drivers remained and questioned the feasibility of Euronext ever surviving as an independent standalone company. ICE’s $10 billion acquisition of NYSE Euronext, announced in December last year, was driven primarily to bolster its own derivatives business through the purchase of London-based NYSE Liffe-Europe’s second largest futures exchange. ICE has already indicated its intention to retain NYSE and related derivatives exchange while making European exchanges available to potential buyers. Sensing an opportunity, well-known private equity player, The Carlyle Group, had approached NASDAQ with an offer to take it private. It is largely believed by analysts that negot... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Exchanges, Markets & Exchanges, Risk & ComplianceExchanges,Markets Exchanges,Risk & Compliance, Exchanges,Markets & Exchanges,Risk & Compliance, Keywords:NASDAQ, NYSE Euronext, NYSE-Liffe, Deutsche Boerse, ASX, Bob Greifield, Elmer Funke Kupper, ICE, The Carlyle Group NASDAQ, NYSE Euronext, NYSE-Liffe, Deutsche Boerse, ASX, Bob Greifield, Elmer Funke Kupper, ICE, The Carlyle Group
|