Galen Stops find few barriers to completion for the industry's best kept secret.
The announcement on December 20, 2012, that
IntercontinentalExchange (ICE) had agreed a deal to buy NYSE
Euronext came as a surprise to many market participants, not
least to journalists who were winding down for Christmas.
The deal itself values NYSE shares at $33.12, a 37.7%
premium to their closing price on December 19 and meaning that
the overall cost of the deal will be $8.2bn for ICE. This is a
deal that suits both parties well.
On one side ICE finally gets its hands on Liffe, a business
that it has coveted for some time. Its previous attempt was
made last year but the joint bid with Nasdaq that was blocked
by the American regulators.
Under the terms of that proposal ICE would have taken
NYSE’s derivatives business while Nasdaq would
have taken the cash equities business, but the US authorities
deemed that the latter part of this deal could have potentially
created a monopoly and therefore blocked the deal.
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