CFIUS clears Deutsche Börse-NYSE merger

Deutsche Börse and NYSE Euronext have taken a small step closer to their merger by receiving approval from a US government body that reviews the effect of foreign investment on national security.

The Committee on Foreign Investment in the United States (CFIUS) has completed its review of the deal and found no objection to it going ahead, according to a statement from Deutsche Börse.

‘[CFIUS] concluded there are no national security grounds to oppose the merger,’ the statement notes.

The merger is expected to face tougher opposition from investigations by competition authorities on either side of the Atlantic, with the biggest hurdle in Europe.

Earlier this month, the European Commission launched an in-depth probe into the tie-up after an initial investigation found areas of concern, in particular in derivatives trading and clearing.

‘The commission needs to make sure markets at the heart of the financial sector remain competitive and efficiently deliver to users,’ said Joaquín Almunia, the commission’s vice president in charge of competition policy, when the new investigation opened on August 4.

Deutsche Börse says it expects the regulatory and competition assessments to continue until the end of the year.

[Article by Tim Human, Inside Investor Relations]

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