Sunday, December 25, 2011

Amid Eurozone debt crisis, US approves Deutsche Boerse-NYSE Euronext deal

WASHINGTON ?- Deutsche Boerse won US antitrust approval to buy NYSE Euronext on Thursday in a $9 billion deal that has hit serious antitrust headwinds in Europe.

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The Justice Department said on Thursday that the deal, which was announced in February, won approval on condition that a Deutsche Boerse subsidiary, the International Securities Exchange, divest its 31.5 percent interest in Direct Edge.

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Direct Edge is the fourth-largest US exchange, the department said.

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Despite the divestiture, Deutsche Boerse and NYSE must continue to provide some services to Direct Edge, the department said.

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In Europe, there have been weeks of negotiations during which European Union antitrust staff made clear their reservations about approving a combination of Deutsche Boerse's Eurex and NYSE Euronext's Liffe on concerns that the merged entity would have a monopoly over European listed derivatives trading.

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Both Boerse and NYSE Euronext have said they would not pursue the merger if they were asked to divest either Eurex or Liffe. A formal decision by the European Commission is not expected until January or early February. ? Reuters

Source: http://www.gmanetwork.com/news/story/242486/economy/finance/amid-eurozone-debt-crisis-us-approves-deutsche-boerse-nyse-euronext-deal

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