Not playing fair?
August 5, 2011
European Union officials launched an investigation on Thursday into the plans to make the world's biggest stock exchange.
The operators of the Frankfurt and New York stock exchanges plan to merge, however the European Commission said it had "competition concerns." Following an initial EU inquiry, the commission said there were worries particularly in the field of "derivatives trading and clearing."
"The proposed merger would remove a strong competitor from the market and would give the merged company by far the leading position in derivatives trading in Europe," EU Competition Commissioner Joaquin Almunia said in a statement.
Pension funds, mutual funds and retail banks as well as professional brokers and investment banks would be most affected, the commission said.
Biggest stock market
The merger between Frankfurt's Deutsche Börse and New York's NYSE Euronext would create the world's largest stock market with headquarters in New York, Frankfurt and other European capitals. The combined group had been valued at 17.6 billion euros ($25 billion).
Shareholders controlling more than 80 percent of Deutsche Börse approved the deal on July 14, after NYSE Euronext shareholders gave their blessing.
In a joint statement, the two companies said the EU decision was "fully anticipated" and they "remain confident the planned combination will be approved."
EU competition officials now have until December 13, "to take a final decision" on whether the deal can go through.
Author: Catherine Bolsover (dpa, AFP)
Editor: Sean Sinico