The European Competition Commission investigating the NYSE/Deutsche Borse merger is walking a tightrope.
The DG Competition investigation into the merger between
Deutsche Borse and NYSE Euronext is a delicate balancing act
enforcing conditions that will promote competition without
blocking the deal. At the root of the
commissionâ€™s concern is the merger of the
two derivative subsidiaries Liffe and Eurex, a deal that would
create a 90% market share of exchange traded derivatives.
There are certain measures it could take that would be
deal-breakers: a spin-off of Liffe or a spin-off of Eurex
Clearing for sure would constitute a de facto blocking of the
deal affecting the material value of the bid to such a great
extent that it would not be worth pursuing.
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