Deutsche Börse pulls out of Euronext bid

German stock exchange operator Deutsche Börse has abandoned its effort to acquire pan-European derivatives exchange Euronext, clearing the path for the New York Stock Exchange (NYSE).

The Frankfurt-based exchange’s decision to pull out of the race for Euronext comes after talks for a merger with Borsa Italiana broke down last week (Risk News, Deutsche Börse merger talks with Borsa Italiana break down).

Deutsche Börse said this morning that the 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 Börse shareholders”.

The rising share price of both NYSE and Euronext has caused the value of the German exchange's proposed merger to slide to €10 per share less than that of its rival bidder.

Deutsche Börse asserted that politicians, stakeholders and regulators across Europe had supported a “European solution” for the process of exchange consolidation on the continent. However, the management of Euronext chose not to reopen talks with Deutsche Börse.

Reto Francioni, chief executive of Deutsche Börse, said: “We are convinced that, in our industry, mergers can only be successful with the support of both management teams and the industry. We have invested time and commitment but it is part of our responsibility to recognize when further effort doesn't make sense.”

Francioni added: “External growth is an option but not a necessity for Deutsche Börse. 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.”