EU regulators quiz customers about Deutsche Boerse's Allfunds deal

EU Investigates Deutsche Boerse's €5.35B Allfunds Deal for Market Impact

Overview of the Deutsche Boerse-Allfunds Acquisition and EU Scrutiny

By Foo Yun Chee

Background of the Acquisition

BRUSSELS, Nov 9 (Reuters) - EU antitrust regulators have asked customers of and rivals to Deutsche Boerse and Allfunds whether the German stock exchange operator's €5.35 billion ($6 billion) deal to acquire the Amsterdam-listed fund-trading platform will boost financial flows to European businesses and increase fund investments.

Regulatory Inquiry Details

In a 134-page questionnaire seen by Reuters, regulators also asked if there are viable competitors to both companies. The request set a deadline of last week for responses. The deal was announced in January.

Potential Outcomes of the Investigation

The information could help regulators decide whether to approve the acquisition with or without conditions or open a full-scale investigation.

The European Commission, which is the EU competition enforcer, will decide by November 27.

Strategic Importance of the Deal

The German stock exchange operator has said the acquisition, its largest ever, is part of a strategy to become a European champion in critical infrastructure for financial markets.

Deutsche Boerse CEO Stephan Leithner has previously said the merged company would better serve clients and support the development of the funds sector in Europe and globally. The two companies did not immediately respond to requests for comment.

Key Questions Raised by EU Regulators

In the questionnaire, the EU watchdog asked whether the deal would increase funds' investments across European borders, such as Spanish investors investing in Swedish funds. The questionnaire also asked if the deal would increase financial flows to European companies due to Deutsche Boerse and Allfunds' increased distribution of UCITS mutual funds outside Europe.

Understanding UCITS Framework

UCITS is a regulatory framework that allows for the sale of mutual funds across the borders of EU countries.

Market Response and Stakeholder Perspectives

Companies were asked if they were willing to pay higher fees for potential benefits from the deal.

($1 = 0.8926 euros)

(Reporting by Foo Yun Chee; Editing by Cynthia Osterman)