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27-05-2019, 07:06 PM
Nasdaq pulls out of Oslo Bors battle, handing Euronext victory
Terje Solsvik
Published MAY 27, 2019
OSLO (Reuters) - Nasdaq withdrew its offer for Oslo Bors on Monday, giving pan-European exchange Euronext free rein to pursue its bid for the Norwegian stock market operator after a five-month battle.
Euronext secured approval from Norwayâs Ministry of Finance this month to buy more than 50% of Oslo Bors for 158 Norwegian crowns per share, effectively blocking Nasdaqâs bid. Both had valued one of Europeâs few independent stock market operators at around 6.8 billion Norwegian crowns ($783 million).
Both Euronext, which runs exchanges in Paris, Brussels, Amsterdam, Lisbon and Dublin, and Nasdaq are looking to expand their portfolios but opportunities are scarce as market operators either already belong to international groups or their shareholders want to remain independent.
With technology speeding up trading and deregulation leading to market integration, size has become an important feature for bourse operators as big data allows larger players to squeeze costs and reduce transaction fees.
The Oslo Bors acquisition is expected to diversify Euronextâs revenue from shares and derivatives trading, given the Norwegian operatorâs leading position in seafood derivatives as well as oil services and shipping.
Euronextâs success blocks Nasdaqâs ambition of completing a sweep of the Nordic-Baltic region, where the U.S. firm already owns the stock markets of Sweden, Denmark, Finland and Iceland, as well as those of Estonia, Latvia and Lithuania.
Nasdaq, which had won the support of the Norwegian market operatorâs major investors DNB and KLP, said it would now release those owners from their obligations.
More details in https://www.reuters.com/article/us-oslo-...SKCN1SX0JE
Terje Solsvik
Published MAY 27, 2019
OSLO (Reuters) - Nasdaq withdrew its offer for Oslo Bors on Monday, giving pan-European exchange Euronext free rein to pursue its bid for the Norwegian stock market operator after a five-month battle.
Euronext secured approval from Norwayâs Ministry of Finance this month to buy more than 50% of Oslo Bors for 158 Norwegian crowns per share, effectively blocking Nasdaqâs bid. Both had valued one of Europeâs few independent stock market operators at around 6.8 billion Norwegian crowns ($783 million).
Both Euronext, which runs exchanges in Paris, Brussels, Amsterdam, Lisbon and Dublin, and Nasdaq are looking to expand their portfolios but opportunities are scarce as market operators either already belong to international groups or their shareholders want to remain independent.
With technology speeding up trading and deregulation leading to market integration, size has become an important feature for bourse operators as big data allows larger players to squeeze costs and reduce transaction fees.
The Oslo Bors acquisition is expected to diversify Euronextâs revenue from shares and derivatives trading, given the Norwegian operatorâs leading position in seafood derivatives as well as oil services and shipping.
Euronextâs success blocks Nasdaqâs ambition of completing a sweep of the Nordic-Baltic region, where the U.S. firm already owns the stock markets of Sweden, Denmark, Finland and Iceland, as well as those of Estonia, Latvia and Lithuania.
Nasdaq, which had won the support of the Norwegian market operatorâs major investors DNB and KLP, said it would now release those owners from their obligations.
More details in https://www.reuters.com/article/us-oslo-...SKCN1SX0JE
Specuvestor: Asset - Business - Structure.
