FRANKFURT Feb 20 Deutsche Boerse AG
is focusing on growth initiatives in Asia and Latin America as
the Frankfurt-based exchange operator charts a fresh direction
after its failed attempt to buy NYSE Euronext.
"We have now closed the chapter on the prohibited merger and
are instead focusing our resources on forward-looking growth
projects," Chief Executive Reto Francioni told the group's
annual press conference on Wednesday.
"Regarding the geographic expansion of our range of
influence, the crucial growth in our markets will no longer be
focused in Europe or North America in future, but in Asia and
In Asia, financial infrastructure had not kept pace with the
dynamic growth in the economy, the Boerse said, adding it had
created a team dedicated to pushing Asian expansion.
Deutsche Boerse will focus primarily on growing on its own,
but would be open to joint ventures. The lack of suitable
takeover targets in Asia made it unlikely the exchange will make
any acquisitions, Francioni said.
Asian markets are evolving and are expected to open up
further. Deutsche Boerse expects China's currency, the renminbi,
to become more internationalised within the next five years.
Deutsche Boerse Group, which includes post-trade processing
and treasury arm Clearstream, already gets between 4 and 5
percent of revenue from Asia.
Francioni declined to be more specific about where his
expansion initiatives were focused, but said a potential
acquisition of Euronext is "not an issue."
NYSE Euronext's European stock market businesses is set to
be split off following IntercontinentalExchange's $8.2
billion takeover of Euronext's parent NYSE Euronext.
The CEO said there were a few cautious signals in the
banking sector that the downward spiral from a loss of
confidence, refinancing bottlenecks and declines in earnings had
been halted after intervention by central banks and governments.
The sustainability of this recovery would become clear
during 2013, he said. And Deutsche Boerse sees an improvement in
profitability levels in the longer run.
If markets continue to rally, full-year revenue might rise
moderately to over 2 billion euros ($2.7 billion), while if the
market environment remains unchanged, sales might remain at the
level of the second half of 2012, Chief Financial Officer Gregor