Euronext, the pan-European exchange, has announced the successful completion of the acquisition of the Irish Stock Exchange (ISE).
As part of the deal, Euronext receives 100 percent of the shares and voting rights of the Irish Stock Exchange Plc. The move is in line with Euronext’s expansionary efforts of its federal model, as the exchange aims to enhance European capital markets and Ireland becomes one of Euronext’s 6 core countries of operation.
News of the ISE acquisition were initially released toward the end of last year, although the transaction needed the approval of local regulatory authorities, which have now confirmed and approved the transaction.
New Chief Executive Officer
Now that the acquisition has been finalized and regulatory approval has been received, the Irish Stock Exchange will operate under the name Euronext Dublin. The exchange will also be empowered by a new CEO, following the appointment of Deirdre Somers to handle the position and its responsibilities, including developing the equity market in Ireland.
Somers offered a comment on the cementing of the acquisition: “this is a historic day for Irish capital markets. We are excited to be part of the Euronext federal model and the opportunities that it delivers to listed companies and Irish enterprises to access wider pools of international capital and corporate services. We are looking forward to building on our reputation as a global leader in debt products to develop the Euronext centre of excellence in listings of Debt & Funds and ETFs to meet market needs.”
Somers will also become the newest member of Euronext’s Managing Board, as well as facilitate the listing of debt and funds, and ETFs. The acquisition provides a strong boost for Euronext in this area, as it will encompass over 37,000 listed bonds and 5,600 funds.
How Will Zero-Fee Investment Platforms Impact Traditional Stock Brokers?Go to article >>
Benefits of the acquisition
Through this acquisition, Euronext will embark on substantial growth opportunities, including becoming the most appealing venue of European ETF listings for foreign investors.
Euronext plans on launching its new MTF for ETFs, which combined with the ISE acquisition, provides investors with a convenient single entry point for European ETFs, spanning across various countries in the region.
Acquiring the ISE will also help to bolster Euronext’s already strong stance as Europe’s leader in debt listings. The pan-European exchange also has an impending launch for Euronext Synapse, its newest platform that will strive to improve liquidity of corporate bonds.
Furthermore, the acquisition will also help to save some capital, as cost synergies are expected to entail a combined six million euros ($7.45 million) by 2020.
The cost efficiency will be aided by several factors, including transferring to Euronext’s new proprietary trading platform, Optiq, the aggregation of European market data through the integration of Dublin offerings to Euronext’s pan-European platform, as well benefiting from Euronext’s existing support system.
Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, commented: “I am pleased to welcome Deirdre Somers as our new Managing Board member and the Head of Listings of Debt & Funds and ETFs, as well as the Euronext Dublin team to the Group. We have a strong growth plan for our new combined Group, to strengthen our leadership in debt and funds listings, and to be the entry point for ETF growth, while generating synergies through the integration of Euronext Dublin. This significant extension of the federal model will also reinforce Euronext’s post-Brexit strategic position and allow the Group to capture growth opportunities that arise, with a disciplined M&A approach.”