Deutsche Boerse, NYSE Euronext Extend Merger Deadline Through March 31

(LUKE JEFFS, Reuters) - Deutsche Boerse and NYSE Euronext have extended the deadline for completion of their planned merger to March 31 next year as they seek to convince European regulators to back the $9 billion deal.

The exchanges, which agreed the merger on February 14, told the Securities and Exchange Commission last week they were exercising their right to extend the initial termination deadline of December 31 2011.

The extension came after months of frantic lobbying by the merger partners as they try to convince European anti-trust authorities in Brussels to approve the combination -- the last hurdle to the deal.

European authorities are fearful the merged entity would have a monopoly in European futures and options and have sought remedies from the exchanges, which between them have over 90 percent of European trading, to address this concern.

The exchanges offered concessions in November, including spinning-off parts of NYSE's futures trading business and offering open-access to D.Boerse's clearing unit to rival exchanges.

But these were rejected by European officials, prompting further concessions two weeks ago and an assurance last week that derivatives trading fees would be capped for three years after the deal.

But European regulators last week showed no signs of buying these arguments, fuelling speculation the exchanges would look to bypass the anti-trust team and focus their lobbying on competition commissioner Joaquin Almunia.

The exchanges are likely to make a case for why their deal to create a pan-European exchange operator -- and the world's largest -- would be good for the European Union at a time when the continent is in financial crisis.

Both sets of exchange shareholders and the U.S. anti-trust authority have approved the deal so the European Commission is the last major hurdle for what would be the largest exchange merger in history.

The Commission is scheduled to decide whether to approve the merger by February 9 but Almunia said last week a decision on the deal was possible by the end of January.

(Editing by Helen Massy-Beresford)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[cadawa]

08:39 PM on 12/28/2011

By passing anti-trust regulators is never good for anyone but the .01% . Wall Street contagion will be music to the ears of Occupy's European recruiters.

[MGLLC]

05:20 PM on 12/28/2011

The only growth in Europe, Japan, and the USA is debt. The entire global economy has an average GDP between $50-65 Trillion a year. The shadow economy on Wall Street averages $600-800 Trillion, far more than what exists in reality.
In 1929, anyone could open a margin account with $100.00 & purchase $190.00 worth of stock, 9:1. When the stocks started falling, the margin calls came in & people ran to the banks to save their portfolios. The banks didn't have the money either, so they collapsed.
Today, it is standard practice to take $100 million and leverage it into $100 Billion. The IMF is now leveraging their funds to lend money to nations in need. Once a nation borrows from the IMF, they are prohibited from borrowing elsewhere, so all competition is eliminated. IMF raises interest rates on these nations making it more likely they will be unable to pay them back. They are forcing Spain to sell their lottery to pay them interest on their money. The sale of the lottery and it's lucrative returns will insure Spain can never repay the money. They all ought to be put out of business, they are destroying western civilization.

[aforbes808]

02:54 PM on 12/28/2011

Is this where we draw the line?
Just checking.

occupy reality.

[thestargazer]

01:41 PM on 12/28/2011

Some good old fashion arm twisting behind the scenes?

[LVNVprog]

01:33 PM on 12/28/2011

Let's make Europe and the U.S. just One Casino so its much easier to take the workers money.
How many Languages are needed to say NO?

[madcityy]

12:17 PM on 12/28/2011

NOOOOOOOOOOOOOOOOO TOOOOOOOOOOO MERGERRRRRRRRRRRRRRRRR