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WFE Focus February 2011
Exchange consolidation news

Bucharest Stock Exchange plans to merge with SIBEX
The Bucharest Stock Exchange plans to buy the Sibiu Monetary, Financial and Commodity Exchange (SIBEX). For this purpose, it has convened an Extraordinary General Meeting of its shareholders on 29 - 30 April 2011.

Colombia Stock Exchange and Peru Stock Exchange merge
On 24 January 2011, the Bolsa de Valores de Colombia and the Lima Stock Exchange signed a Memorandum of Understanding to take the first step toward a corporate merger, the first one between two exchanges in Latin America. The merger should be approved by the General Meeting of shareholders of both bourses and by the market supervisors in Peru and Colombia. The new company, taking into account the cumulative results of the last 12 months to September 2010 would have consolidated revenues of USD 45.8 m, EBITDA of USD 22.4 m and assets of USD 94.5 m.

Deutsche Börse and NYSE Euronext agree to merge
On 15 February 2011, Deutsche Börse and NYSE Euronext entered into a business combination agreement following approval from both companies’ Boards. The new Group, incorporated in the Netherlands, will be dual headquartered in New York and Frankfurt. The combined group will also have key businesses, infrastructure and executives located in Paris, London, Luxembourg and other locations. Each of the group's national exchanges, including those in Amsterdam, Brussels, and Lisbon, will keep its name in its local market and all exchanges will continue to operate under local regulatory frameworks and supervision. The combined group will have 2010 combined net revenues of EUR 4.1 bn/USD 5.4 bn, and 2010 EBITDA of EUR 2.1 bn /USD 2.7 bn. Based on 2010 net revenues, the combined group will earn approximately 37% of total revenues in derivatives trading & clearing, 29% in cash listings, trading & clearing, 20% in settlement & custody, and 14% in market data, index & technology services. Expected costs synergies would be around EUR 300 m/USD 400 m. Reto Francioni will be Chairman of the new Group. Duncan Niederauer will be Chief Executive Officer and will lead an Executive Committee with an equal number of current Deutsche Börse and NYSE Euronext executives. The new entity will be led by a one-tier board with 17 members (15 directors plus the Chairman and the CEO). Of the 15 directors, 9 shall be designated by Deutsche Börse and 6 by NYSE Euronext. For more details, please visit:

London Stock Exchange Group and TMX Group merge
The London Stock Exchange Group and TMX Group signed an agreement to combine Europe's and Canada's leading diversified exchange groups in an all-share merger of equals. The merger will create a world-leading organization and is unanimously being recommended by the Boards of both LSEG and TMX. The combined transatlantic group will be jointly headquartered in London and Toronto, and will offer an international gateway, leading global pools of capital formation and liquidity together with a unique portfolio of highly complementary markets, products, technologies and services.

MICEX and RTS Stock Exchange to merge
The shareholders of MICEX signed a non-binding letter of intent to acquire controlling interest of RTS Stock Exchange. It was signed with RTS Stock Exchange’s shareholders owning together over 50% of the company’s share capital. This letter launched the process of merging Russia’s two leading bourses. The deal is expected to be concluded by the end of the first half of 2011. The merger of technology services is expected to be completed during 2011-2012. In accordance with the terms of the letter, 35% of the consideration for RTS will be paid in cash and 65% will be paid in shares of MICEX. MICEX Group will invite other RTS Stock Exchange shareholders to join the agreement. The merger of the two largest Russian bourses will facilitate the establishing of a powerful, integrated financial market infrastructure, professionally managed and run according to up-to-date principles of interaction between all market participants. This step will become a key element in establishing Moscow as an international financial center.

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