The European Commission on Monday approved InterContinentalExchange's proposed $ 8.2 billion takeover of NYSE-Euronext, saying the two are not direct competitors in most markets and will continue to face strong competition from other exchanges.
ICE, based in Atlanta, Georgia, is best known as a commodities marketplace. It announced its stock-and-cash offer for NYSE-Euronext, valued at USD 33.12 per share, in December. The deal will give ICE control of the New York Stock Exchange and london-based liffe, Europe's second-largest derivatives market.
"The market investigation revealed that they do not exert a greater potential competitive threat on each other compared to other exchanges," the Commission said in a statement detailing its decision. "Any anticompetitive effects can therefore be excluded." The combined ICE-NYSE Euronext is slated to become the third-largest exchange group globally, behind Hong Kong Exchanges and Clearing and CME Group.
Commission approval had been widely expected: after a joint bid for NYSE-Euronext by ICE and Nasdaq failed last year, ICE had proactively asked the Commission to examine the new bid.