NYSE expects no big sales in Deutsche Boerse deal

NEW YORK Fri Jun 10, 2011 4:53pm EDT

Shareholders arrive for the annual shareholders meeting of German Stock Exchange Deutsche Boerse in Frankfurt May 12, 2011. REUTERS/Alex Domanski

Shareholders arrive for the annual shareholders meeting of German Stock Exchange Deutsche Boerse in Frankfurt May 12, 2011.

Credit: Reuters/Alex Domanski

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NEW YORK (Reuters) - Deutsche Boerse AG (DB1Gn.DE) and NYSE Euronext NYX.N do not expect to sell any major parts of their businesses as part of what is expected to be a tough European antitrust review of their merger, the Big Board's chief executive said on Friday.

Getting rid of a major business would be a "remote, or very, very unlikely" outcome of the European review, NYSE CEO Duncan Niederauer said at a conference hosted by investment bank Sandler O'Neill on Friday.

The exchange operators plan to file the application for their antitrust review in Brussels in the next week or two, Niederauer said during a presentation with Deutsche Boerse CEO Reto Francioni.

Regulators in Brussels must consider that their decision could "punish" European businesses and hand an advantage to U.S.-based futures exchange CME Group Inc (CME.O) as they analyze Deutsche Boerse's $10.2 billion deal to buy NYSE, the head of the Frankfurt exchange operator said.

"We have no influence in the decision, but this is also something they should bear in mind," Francioni said, adding CME runs "exactly the model we run."

Deutsche Boerse struck the deal for NYSE Euronext in February. It would create the world's largest exchange operator, trading almost every asset class and have operations in the United States and Europe.

The company would have a near-lock on European exchange-based derivatives trading, so the deal faces a tough antitrust review in Brussels.

The companies have said that their derivatives venues, Eurex and Liffe, handle the opposite ends of the rate futures spectrum so they do not directly compete. The Chicago Mercantile Exchange made a similar argument in completing its acquisition of the Chicago Board of Trade.

NYSE shareholders plan to vote on the acquisition on July 7, while those of Deutsche Boerse have until July 13 to tender their shares to the deal.

(Editing by Robert MacMillan)

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