Exchange Consolidation Will Continue, Nasdaq Chief Greifeld Says
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Nasdaq OMX Group Inc. (NDAQ) Chief Executive Officer Robert Greifeld said consolidation among exchanges will continue even if antitrust regulators block Deutsche Boerse AG (DB1)’s bid for NYSE Euronext.
“Not at all,” Greifeld said in an interview with Bloomberg Television today in Davos, Switzerland, responding to a question on whether consolidation is over. “We’re pursuing a strategy of organic growth combined with bolt-on acquisitions.”
European antitrust regulators, led by European Union Competition Commissioner Joaquin Almunia, are next week likely to formally prohibit the merger of NYSE Euronext (NRX) and Deutsche Boerse, the last remaining deal after a year of failed attempts. Should the takeover be blocked, it would mean $37 billion in exchange mergers announced since October 2010 didn’t close, according to data compiled by Bloomberg.
Nasdaq OMX, which made a failed hostile bid for NYSE Euronext (NYX) in April, isn’t interested in buying London Stock Exchange Group Plc (LSE), Greifeld said yesterday. He also said he wouldn’t consider a second attempt at NYSE Euronext because the U.S. Justice Department rejected the idea.
Almunia said earlier today that NYSE Euronext and Deutsche Boerse’s planned merger of trading and post-trading operations would cause “serious” concerns. Almunia’s team at the European Commission has told the two companies they’ll seek to veto the deal to create the world’s largest exchange because it would monopolize derivatives trading in the region, according to two people familiar with the matter. Almunia has promised a ruling on Feb. 1.
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