Deutsche Boerse AG (DB1) sought an extension of the European Union’s review of its plan to combine with NYSE Euronext (NYX) in order to better respond to regulators’ competition objections to the deal.
Deutsche Boerse said it needed more time to analyze the European Commission’s charge sheet, or statement of objections, and prepare a response. The commission, the 27-nation EU’s antitrust regulator, set a new deadline of Dec. 22 to complete its review of the deal, according to its website today.
“Given the complex issues involved and our desire to provide a full and comprehensive response to the commission, we have asked for and received seven additional working days to provide our submission,” Frank Herkenhoff, a spokesman for Deutsche Boerse, said in a phone interview today.
The request comes with Deutsche Boerse and NYSE Euronext scheduled to give reasons why their deal should close at an EU hearing on Oct. 27 and 28 in Brussels, according to two people, who declined to be identified because the hearing is private. The companies will address allegations listed in an EU statement of objections this month that the merger would harm competition for derivatives trading, clearing and index licensing, three people familiar with the review said last week.
EU regulators are probing the merger, which would put more than 90 percent of the region’s exchange-traded-derivatives market and about 30 percent of European stock trading in the hands of one organization. The regulator has cited concerns over reduced innovation in derivatives products and technology.
Herkenhoff declined to comment on the hearing dates. Amelia Torres, a spokeswoman for the commission declined to comment on the review process.
The European Commission can require companies to change their behavior or to sell off units to eliminate possible competition concerns.
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