Deutsche Brse has decided not to pursue a combination with Euronext.
The company said it will also stop all preparatory steps including the regulatory and merger control processes. This decision was based on the assessment that a transaction supported by both sides will not be achievable and, in the light of recent share price developments, a transaction would no longer create value for Deutsche Brse shareholders.
Politicians, stakeholders and regulators across Europe have confirmed their preference for a European solution. Despite this broad support, the Euronext management did not reopen talks with Deutsche Brse. However, Deutsche Brse continues to believe that a combination of exchanges can only be successful if both sides willingly work together.
In addition, recent share price developments would lead to a participation of Deutsche Brse shareholders in a combined group that is not attractive when compared with the earnings contribution of the two companies.
“We are convinced that, in our industry, mergers can only be successful with the support of both management teams and the industry,” says Reto Francioni, the CEO of Deutsche Brse. “We have invested time and commitment but it is part of our responsibility to recognise when further effort doesn’t make sense. External growth is an option but not a necessity for Deutsche Brse. Based on our very strong position in the industry, we will continue our successful organic growth path. Nevertheless, we expect to take an active role in the consolidation process in our industry in Europe and beyond.”