Euronext received approval from Norway’s Ministry of Finance to purchase 100% of Oslo Bors on Monday, successfully ending a five-month clash with Nasdaq for one of the final stand-alone stock market operators in Europe. Whereas Euronext has already secured a stake of over 50% in Oslo Bors, Nasdaq had argued that no takeover must be allowed until a two-thirds stake was obtained to ensure that a purchaser would have complete management control.
Each had supplied 158 Norwegian crowns per share for Oslo Bors, valuing it at 6.8 billion Norwegian crowns ($779 million), however, the comment of the Norwegian authorities was essential.
“Euronext welcomes the ministry’s clearance to accumulate as much as 100% of Oslo Bors VPS’s capital and appears ahead to finishing the subsequent steps to shut the transaction by the top of June,” Chief Government Stephane Boujnah mentioned on Monday.“We’re glad the procedure is carried out in full respect of Norwegian legislation,” mentioned Boujnah.
Each Euronext, which operates exchanges in Paris, Brussels, Amsterdam, Lisbon and Dublin, and Nasdaq want to expand their portfolios however alternatives are scarce as market operators either already belong to worldwide groups or since their shareholders want to remain impartial.
Given technological modifications, dimension has become an essential characteristic as great information permits more prominent market operators to squeeze prices and cut back transaction charges.
Oslo Bors was one of many last potential targets for Euronext within the area where Nasdaq and London Stock Exchange already operate several platforms.
Shares in Paris-based Euronext, which is because of release first-quarter outcomes this week, traded 1.6% greater at 61 euros.
Nasdaq had received the support of over a third of Oslo Bors shareholders along with the Norwegian market operator’s principal shareholders DNB and KLP. The U.S.-based agency had been hoping to dam Euronext’s bid.
No such minimum possession requirement shall be imposed, however, the Norwegian ministry mentioned in a press release.