February 23, 2011 / 3:44 PM / in 8 years

Deutsche Boerse unit buys majority in EEX

FRANKFURT (Reuters) - Deutsche Boerse on Wednesday said derivatives unit Eurex Zuerich AG will take a majority stake in energy exchange EEX, cutting the exchange operator’s dependence on trading stocks and derivatives.

In December Eurex secured an option to buy a stake of up to 22.96 percent in the EEX from Landesbank Baden-Wuerttemberg (LBBW), a move that could hand Eurex a 58.19 percent stake in EEX.

Eurex said its stake would rise to a majority from its current stake of 35.2 percent, but could not say to what level given the continuation of the tender period.

Eurex said the shares are to be transferred at a price of 7.15 euros per share plus a premium of 0.60 per share.

In December Eurex said the transaction will cost up to 71.3 million euros ($93.65 million), expanding its reach into fast-growing commodities markets.

EEX and Eurex are already cooperating in trading and clearing of emission rights and power derivatives.

EEX, a Franco-German exchange, accounts for power trading equivalent to a third of European consumption. Its activities span power trading in continental Europe, which has been linked to the Nordic region and the UK via cables, and already reaches through to Hungary.

Eurex is a joint venture between Switzerland-based SIX Swiss Exchange and Frankfurt-based Deutsche Boerse.

Reporting by Edward Taylor

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