This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

ICE Seeks Brussels Review of NYSE Euronext bid

BRUSSELS ( The Deal) -- Hoping to cut through some regulatory red tape, IntercontinentalExchange Inc. said Thursday it has asked the European Commission to review its planned $8.2 billion purchase of NYSE Euronext.

The Atlanta-based buyer said in a regulatory filing Thursday that it made the request Monday, which it will follow with a formal application later. Once that happens, Spain, Portugal and the U.K. -- where ICE is required to file for approval -- have 15 working days to file any objections.

If no one objects to giving the EC jurisdiction, then ICE will notify the deal in Brussels "as promptly as practicable," it said. That would trigger an initial one-month-long investigation.

Although the deal still requires clearance by financial authorities in Belgium, France, the Netherlands and Portugal, as noted in ICE's latest filing, going to the commission would allow ICE to have one antitrust review in Europe rather than three. It's entitled to make the request under EU rules in effect since May 1, 2004, which sought to strengthen the EC's role as a "one-stop shop" for reviewing cross-border transactions. Merging companies and EU governments are both allowed to make referral requests.

The deal was waved through in February by U.S. antitrust authorities, which found little overlap in that country, where ICE operates futures markets for agricultural, energy and financial futures, while NYSE concentrates on stock and options trading.

ICE, an exchange for futures and over-the-counter energy and commodity contracts as well as derivative products, was created more than 12 years ago from the former Continental Power Exchange. Last December, it agreed to acquire NYSE Euronext in a cash-and-stock-deal, after two previous attempts to take over NYSE collapsed because of regulatory concerns.

In May 2011, the U.S. Department of Justice blocked an $11 billion hostile bid for NYSE from ICE and Nasdaq OMX Group Inc. Regulatory hurdles also scuttled a $10 billion bid last year for the parent of the Big Board operator by Deutsche Borse AG, the operator of the Frankfurt exchange in Germany.

Interestingly, a regulatory tussle erupted in Europe last year over London Stock Exchange Group plc's takeover bid for LCH.Clearnet Group Ltd., which gained clearance from the U.K.'s Office of Fair Trading in December. U.K. regulators reviewed the deal after successfully opposing requests from France, Portugal and Spain for a Brussels review.

Thursday's announcement comes just after ICE and NYSE Euronext revised the structure of their merger agreement, with ICE making the acquisition through a newly formed holding company called ICE Group. Under the revised plan, ICE and NYSE Euronext will become wholly owned subsidiaries of ICE Group, and each share of ICE common stock will be converted into the right to receive one share of ICE Group common stock.

--Written by Renee Cordes in Brussels.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,390.52 +195.10 1.13%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs