SIX Securities Services has acquired Oslo Clearing from the Oslo Brs VPS group for about NOK 180 Millions (ca. CHF30 million). The deal assumes book equity to be worth about NOK 120 millions (ca. CHF 20 million).
The acquisition sees SIX acquiring a complementary product line through the acquisition of a captive derivatives clearing business.
The envisaged consolidation of additional volumes and clients on to a single platform is also expected to help reduce unit costs and increase flexibility for customers. Integration work will start after closing of the transaction in 2014. Through buying scale, SIX estimates it will see a 25% increase in clearing volumes including for all Nordic banks.
According to Thomas Zeeb, CEO, Securities Services: “SIX has, since its inception, been at the forefront of interoperability initiatives in Europe to allow customers to benefit from greater competition and freedom of choice as to who they clear with. The acquisition of Oslo Clearing is complementary to our existing businesses and provides a further expansion of choice, both for existing SIX clients as well as Oslo Clearing clients, who will benefit from single-interface access to additional markets as well as greater efficiencies and economies of scale. Additionally, we see significant opportunities for future product extensions and diversification as part of our post-trade value chain.”
For the Oslo Brs members this means a continuation of clearing services in a larger, international unit that will also maintain the planned implementation of CCP interoperability for clearing of equities with LCH.Clearnet.
“All parts of the value chain in the securities market are subject to new regulation and increased competition. The market needs larger and more robust European clearing corporations, and for Oslo Clearing collaboration with SIX x-clear will represent an exciting continuation of the technology and expertise they have built up over several years. The merged company will be a long-term high quality partner for clearing of equities and derivatives in Norway and in the Nordics”, says Bente Landsnes, CEO of Oslo Brs VPS.
Oslo Clearing will be part of Securities Services, the post trade division of SIX.
Subject to approvals, the deal is expected to close in the second quarter of 2014.
Arctic Securities acted as financial advisor and Advokatfirmaet Wiersholm as legal advisor to Oslo Brs VPS in relation to the transaction.
(JDC)