Euronext CEO Dismisses Near-Future Merger Plans with Deutsche Boerse
Euronext's Position on Potential Merger and Italian Interests
By Giuseppe Fonte
CEO Stephane Boujnah's Statement on Merger Prospects
ROME, May 21 (Reuters) - Euronext CEO Stephane Boujnah ruled out on Thursday the possibility of a merger with Deutsche Boerse in the near future, even though such a deal "would make sense".
Previous Merger Attempts
"We have already sought a merger with Deutsche Boerse three times, I don't think there will be a merger in the near future," Boujnah told an Italian parliamentary hearing.
Italian Lawmakers' Concerns Over Milan Bourse
Italian ruling lawmakers summoned Boujnah over Euronext's plans for the Milan bourse, which the Amsterdam-registered group acquired from London Stock Exchange Group in 2021.
Impact on Italian Shareholders
Asked if a merger with Deutsche Boerse would cause Italian shareholders to lose their grip on Euronext, Boujnah said the deal would dilute the stakes of leading shareholders, including Cassa Depositi e Prestiti (CDP) and Intesa Sanpaolo.
Growth and Shareholder Control
"Growth leads to dilution. If you want to remain fully in control, you need to stay within your own boundaries," he said.
Legal Dispute and Influence Over Euronext
Italian state lender CDP has opened a legal challenge to Euronext over the powers to appoint the Milan bourse's CEO.
CDP's Push for Greater Influence
The clash is part of CDP's broader attempt to gain greater influence within Euronext, a push that Reuters previously reported aims to ensure the appointment of an Italian executive to lead the pan-European stock exchange at a later stage.
Euronext's Commitment to Borsa Italiana
"I don't understand how we've gotten to this point over something that's just a misunderstanding," Boujnah said, reassuring Italian lawmakers that Euronext has no intention of downgrading Borsa Italiana's business.
(Reporting by Giuseppe Fonte; Editing by David Goodman and Alexander Smith)
