After two other deals were blocked by anti-trust legislation in both in the US and in Europe, a deal to sell NYSE Euronext to an upstart competitor—Intercontinental Exchange (ICE)—made it through.
America’s long-standing symbol of capitalism is now owned by ICE and has headquarters in both Atlanta and New York.
This Website Is For Financial Professionals Only
The takeover issues in a new era of consolidation in the world of market operators. NYSE Euronext had tried to merge with Deutsche Bӧrse, which would have created a behemoth in the derivatives world.
But European antitrust regulators nixed the deal. ICE had partnered with NYSE Euronext rival Nasdaq OMX Group in a hostile bid but that deal was nixed by the US Justice Department.
ICE and NYSE Euronext have little overlap so the deal is expected to gain regulatory approval.
Although the Big Board has symbolized the US stock market for over two centuries
, the main attraction for the merger is the NYSE Euronext over-the-counter derivatives market.
Shareholders of NYSE Euronext will hold about 36% of the newly combined company.