Eurex has agreed to acquire from the Landesbank Baden-Wrttemberg (LBBW) banking group part or all of its stake in the European Energy Exchange, increasing Eurexs current 35.2% stake in the exchange by up to an additional 22.96%.
In a statement, Eurex said its objective is to further strengthen Leipzig as a European center of expertise for energy and emissions products.
Peter Reitz, member of the Eurex executive board responsible for product and business development, says, By expanding our stake we are going to improve EEXs position in European energy trading through close coordination of our product development and sales activities. At the same time we are strengthening our presence in the commodity markets, as financial and commodities markets are growing ever more closely together.
Eurex and the EEX have been cooperating in the trading and clearing of emissions rights and power derivatives since December 2007.
According to the Eurex statement, the shares are to be transferred at a price of 7.15 per share plus a premium of 0.60 in the event that Eurex becomes the majority shareholder. If Eurex acquires all LBBW’s shares, the maximum purchase price for the shares would be 71.3 million. However, under the preemption rights laid out in the consortium agreement, LBBW is obligated to offer its shares on a pro rata basis to other EEX shareholders. This means that Eurex will acquire at least 10.7% of the EEX in this process for a purchase price of 30.7 million.
Deutsche Brse, which owns Eurex, will fund 85% of the purchase price with cash on hand, according to the statement.