Euronext sets sights on first M&A target 16 May 2016Amsterdam Reporter: Drew Nicol
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Euronext has placed a bid for a 20 percent stake in fellow central counterparty (CCP) EuroCCP, as part of its new strategic expansion plan.
Talks are currently underway with the proposed stake valued at €14 million, including contributions to regulatory capital.
If the acquisition is successful Euronext has pledged to launch a platform to allow trading participants within the eurozone a choice of clearing services provider for its equity markets.
In a statement on the bid, Euronext stated it will open the preferred clearing model up to other CCPs “in due course”.
The acquisition talks come as part of Euronext’s strategic ‘agility for growth’ plan, which outlines a commitment to “disciplined and selected bolt-on acquisitions”.
The expansion plan has been allocated up to €150 million in finance until 2019.
A successful deal will see Euronext join the likes of ABN AMRO Clearing Bank, Bats Europe, the Depository Trust & Clearing Corporation and Nasdaq, each of which own 20 percent of EuroCCP.
Stéphane Boujnah, chair and CEO of the managing board of Euronext, said: “Our investment in EuroCCP and the implementation of a preferred CCP model will ensure the long-term delivery of clearing choice for our diverse range of equity clients.”
“It further reduces the frictional costs of trading on our equity markets. This is a step forward in our commitment to offer optionality to all our clients in the eurozone and to power pan-European capital markets to finance the real economy.”
Jan Bart de Boer, chair of the supervisory board of EuroCCP and chief commercial officer at ABN AMRO Clearing, added: “Sustaining competition in clearing has long been our goal at EuroCCP and we are delighted that Euronext joins us in this vision as a strategic investor and service partner.”
“We look forward to working closely with them on the roll-out of their preferred clearing model.”
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