In order to make the merger acceptable, the commission requires that the companies either sell Deutsche Börse’s Eurex derivatives exchange or NYSE Euronext’s LIFFE.
The European Union (EU) has blocked the merger of exchange operators Deustche Börse and NYSE Euronext, a marriage that would have created the world’s largest financial exchange.
Earlier today, the European Commission, the EU’s executive body, said it was ruling against the merger because the combined entity would make the marketplace tougher for new and emerging competition, according to a Reuters report.
‘These markets are at the heart of the financial system, and it is crucial for the whole European economy that they remain competitive,’ says Joaquín Almunia, EU Competition Commissioner. ‘We tried to find a solution, but the remedies offered fell far short of resolving the concerns.’
In order to make the merger acceptable, the commission requires that the companies either sell Deutsche Börse’s Eurex derivatives exchange or NYSE Euronext’s LIFFE, but both exchanges turned down this offer.
The NYSE says it would return $550 million to shareholders through a share repurchase program and will seek to enhance its derivatives business.
Deutsche Börse, Germany’s leading stock market by more than 20 percent, says that despite the failed deal, the company is expected to grow further.
In December US regulators gave the green light on the merger providing that the exchanges sold one of its assets.
