The international derivatives exchange Eurex has entered into agreements to increase its stake in the Leipzig based European Energy ExchangeAG (EEX) by up to 20.85% to then 44.075 for a consideration of55.15 million.
This move underscores the strategic partnership of Eurex and EEX in emissions trading, under which the partners jointly offer contractson emission rights since December 2007. In addition, Eurex also expands its exposure in the fast growing commodities markets.
Eurex announced on Wednesday that it plans to acquire 3.46% of EEXsown shares for 9.15 million, translating into 6.60 per share. In addition, Eurex has entered into a purchase agreement with Nord Pool ASA to acquire the 17.39% stake Nord Pool holds in EEX for a consideration of 46 million or 6.60 per share.
Under the pre-emption rights laid out in the consortium agreement, Nord Pool is obligated to offer the shares on a pro rata basis alsoto other EEX shareholders. Against this background Eurex will acquire atleast 38% of Nord Pools stake.
Both transactions are expected to be closed in the second quarter 2008 and are subject to approvals from Supervisory Boards of Eurex and Deutsche Brse AG, as well as the Executive Board and Supervisory Board of Swiss Financial Market Services AG and the German Federal Cartel Office. Additionally, the acquisition of the Nord Pool stake requires theapproval of the EEX Supervisory Board.
Eurex currently holds 23.22% of EEXs share capital, following a mergerof Eurex subsidiary EEX with LPX back in early 2002. In December 2007,Eurex and EEX entered into a co-operation in emissions trading. As of 5 December 2007, Eurex participants have direct access to the EEX order book for trading EU allowance futures.
Since the launch of the co-operation, volumes have strongly increased: in January 2008, the daily average volume was roughly 186,000 EUA, compared with about 11,000 EUA in January 2007. On 26 February 2008, a new daily record was achieved with 600,000 EUA.
The cooperation has the potential to create the largest internationalnetwork for emissions trading, in which the two partners address approximately 600 trading member firms from the energy sector and financial institutions.
As of 26 March 2008, the partners will make futures on Certified EmissionReductions (CERs) available to their mutual customer base. CERs are globalemission credits in accordance with the Kyoto Protocol.