NYSE Euronext and Deutsche Boerse allow more time for merger
The proposed merger between NYSE Euronext and Deutsche Boerse has many opponents in Europe.
Stock exchange operators NYSE Euronext and Deutsche Boerse have extended the deadline for the completion of a proposed deal between the two companies, a move that may have been advised by merger and acquisition consultants.
European regulators are opposed to an agreement between the firms, worried about the potential negative affects on competition in the market.
The deadline for the deal has now been moved to March 31st 2012 rather than December 31st 2011, according to a filing to the Securities and Exchange Commission.
In order to persuade the European authorities to allow the $9 billion merger go through, the companies offered to create a competitor, sources recently told Reuters.
The US Department of Justice approved the deal last week, although Deutsche Boerse's International Securities Exchange was forced to sell its 31.5 per cent stake in US stock exchange Direct Edge before the regulators agreed to give their backing.
Posted by David Gleck
Source: Reuters, the Wall Street Journal and the New York Times, December 28th