European Commission extends review of planned business combination

04 August 2011

Deutsche Börse AG and NYSE Euronext confirm that the European Commission has initiated a Phase II review of their proposed business combination. The Commission's decision to open an in-depth investigation was fully anticipated and does not in any way prejudge or prejudice the ultimate outcome.

Deutsche Börse and NYSE Euronext remain confident that their planned combination will be approved. The companies have had open and constructive discussions with European Commission staff throughout, and look forward to continuing to work closely with the European Commission to obtain clearance for a transaction that will deliver an extraordinarily broad range of benefits to European market participants. The companies’ combined businesses will remain exposed to important competitive constraints from OTC, other exchanges worldwide and newer trading venues, competing clearing systems, and sophisticated users.

In particular, the companies intend to demonstrate that the combination will:

• Bring together two complementary derivatives businesses, giving them the scale and depth to compete effectively in a global industry with many powerful participants - exchanges, OTC platforms, banks and clearers - and to keep pace with increased competition driven by technology and regulatory changes.
• Provide significant benefits for clients and issuers, thanks to increased efficiencies and reduced costs from opportunities for post-trade harmonisation. The companies expect US$ 3 billion in capital efficiencies for customers.
• Increase the number of market participants, improve their access to the companies’ exchanges, and extend the number of available products through the combination of the companies’ complementary products and services. This will serve to increase liquidity, which will in turn benefit the European economy as a whole by improving the stability, safety and transparency of the capital markets.
• Provide a secure environment, with significant flexibility to invest, grow and innovate for customers, while providing compelling long-term growth and value creation for shareholders.

The Commission now has 90 working days to review the transaction, although the period may be extended in certain circumstances. The two companies have previously received overwhelming approval from their respective shareholders.

Press release

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