EU Set to Approve ICE’s Bid for NYSE Euronext

Joe Goldman |

NYSE Advanced Trading FloorThe Intercontinental Exchange (ICE) is set to win full EU approval for its $8.2 billion bid for NYSE Euronext (NYX), according to a Reuters report.

The deal will officially make ICE the third-largest exchange in the world and will allow ICE to operate the New York Stock Exchange, NYSE Liffe Euronext, NYSE Arca, and many other major exchanges. The deal will also bolster ICE’s exposure to several highly lucrative trading businesses, particularly derivatives and interest rate futures.

For the past month, the European Commission has assessed competition concerns associated with the deal. However, Reuters reported that the EC has no objection to the deal because the ICE and NYSE Euronext operate exchanges for two entirely different types of assets. As a result, the path is clear for the deal to enter final stages.

Because the deal is for $8.2 billion in cash and ICE stock, the two companies have traded in close correlation with one another over the past six months. Since the deal was announced in December, ICE shares are up 37.5 percent. As a result, NYSE Euronext stock has gained 28.83 percent.

In immediate response to the news, investors applauded the EC’s decision. Shares of ICE rose 3.30 percent to $178.87 on Monday, while NYSE Euronext stock rallied 2.64 percent to $41.55.

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Companies

Symbol Name Price Change % Volume
GS.P.C Goldman Sachs Group Inc. (The) Depositary Share re 23.28 0.21 0.91 65,578
ICE Intercontinental Exchange Inc. 270.45 -3.08 -1.13 514,186

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