NYSE chief says Deutsche merger on track
NYSE Euronext chief executive Duncan Niederauer has reassured Deutsche Boerse investors that the blockbuster merger between the two exchanges is on track although regulatory approval has not yet been granted.
Full approval from European regulators for the $10.3bn (£6.2bn) deal is not expected until the fourth quarter of the year, but NYSE Euronext shareholders will vote on the prospective merger on 30 July.
Deutsche Boerse shareholders have until July 13 to tender their shares in a deal that will create the world’s largest exchange operator by volume traded.
“Let me just be clear: we don’t expect to have all regulatory approval by the July vote. But we do try to be as transparent as possible,” Niederauer told analysts at Deutsche Boerse’s investor day.
He said it was “way too early” to talk about any potential outcome of talks with regulatory authorities, which could prompt the spin-off of certain assets.
“Talks with regulators on both sides of the Atlantic are very active and very constructive,” he said.
The two exchanges agreed to merge in February but have faced EU anti-trust concerns over the size of their combined clearing and derivatives operation in Europe.
Talks have also been complicated by an opportunistic rival bid last month from Nasdaq OMX Group and IntercontinentalExchange, which offered $11.3bn for NYSE.
However, Nasdaq-ICE was forced to withdraw its bid after US antitrust regulators objected to the combined exchange’s overwhelming dominance of the US market.
Since launching its bid, Deutsche Boerse has increased its forecast annual synergies by more than a third. It now expects €150m in additional annual revenues and €400m cost reductions.