A merger between NYSE Euronext and Deutsche Börse would be controversial. How would it be viewed the competition authorities? And what about the exchanges’ users? Let’s not even talk about what US public opinion would think of foreigners getting their hands on the New York Stock Exchange.
Because the two companies have a combined annual revenue of more than €5bn, a merger would fall under EU jurisdiction for competition law. Seeking clearance for the deal would involve sending the European Commission a CO form giving details of the market, the two entities’ shares and how the merger would affect this.
There would be an initial investigation taking 25 working days, after which either Phase 1 clearance would be given, or the Commission would declare that there were problems.
If problems were raised, a more in-depth investigation would take place and a final Phase 2 decision for either approval...