Commission to analyse merger

Merger between Deutsche Börse and NYSE Euronext to be assessed for competition risks.

The European Commission is expecting notification of a proposed merger that would create the world’s largest stock and derivatives exchange – combining Deutsche Börse and NYSE Euronext. 

The Commission will then have 25 days to analyse any potential risks to competition. Regulators from the US Justice Department would carry out a similar investigation. Analysts suggest that clearance would not be straightforward because of the complexity of the case and the competition concerns it raises.

The two companies said that the new group, which is expected to generate cross-selling of products and annual cost-savings of about €300 million, would be incorporated in the Netherlands and have headquarters in New York and Frankfurt.

Cautious welcome

The Association for Financial Markets in Europe, which represents banks and brokers, gave a cautious welcome to the proposal, describing it as a pragmatic response to increased competition, notably in the context of the rise of Asian markets.

Reto Francioni, the chief executive officer of Deutsche Börse, who would become the merged group’s chairman, said: “This combination positions the group for a unique growth opportunity.”

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