Published : Jan. 11, 2012 - 18:13
Traders work on the floor of the New York Stock Exchange in New York. (Bloomberg)
BRUSSELS (AFP) ― European regulators consider a merger between stock market operators Deutsche Boerse and NYSE Euronext to be unacceptable, a source said Tuesday, as the European Commission approaches making a final decision next month.
The services of Competition Commissioner Joaquin Almunia still have reservations and objections to a merger which would see Deutsche Boerse shareholders own 60 percent of the new combined, Netherlands-incorporated firm, a source familiar with the review told AFP on condition of anonymity.
“It is not certain the Commission could accept” the merger when it considers the deal on Feb. 1 or 9, added the source.
The European Commission declined to comment.
Last month the source told AFP that the merger “is difficult for the Commission to accept in its current state.”
The Frankfurt and New York exchange operators both indicated Tuesday they had received no information about the Commission’s position, and would not comment on speculation.
They said they had been told a final decision on the proposed merger would be taken on Feb. 9.
In September they received from the Commission a “Statement of Objections” regarding the merger, essentially regarding a potential domination of the equity derivatives trading and clearing segment.
In November they proposed NYSE Euronext and Deutsche Boerse would each sell off some of their derivatives businesses to allay the Commission’s concerns.
The source said that the Commission’s competition experts, which had estimated the combined exchanges would dominate 90 percent of the derivatives market in Europe, had tested their proposals but were not satisfied.
“We have also proposed substantial and tangible concessions that address the EC’s competition concerns,” NYSE Euronext said in a statement.
The proposed merger has sparked controversy in the U.S. because it would hand over the New York Stock Exchange to foreign owners and create a powerful force in 24-hour global trading of shares and derivatives.
The value of the combined company would be $17 billion, according to Dow Jones Newswires.