Euronext CEO rules out merger with Deutsche Boerse in near future
Euronext’s Position on Potential Merger and Italian Stakeholder Concerns
By Giuseppe Fonte
Euronext CEO’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".
"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.
Background: Euronext’s Acquisition of 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.
Concerns Over Italian Operations
The prospect of a tie-up between Euronext and Deutsche Boerse has fuelled concerns in Italian government circles that Euronext could scale back its Italian operations and favour listings in other markets.
Impact on Italian Shareholders
Asked if a merger with the German stock exchange would cause Italian shareholders to lose influence in Euronext, Boujnah said such a deal would dilute the stakes of all leading stakeholders, including Italian state lender Cassa Depositi e Prestiti (CDP) and Intesa Sanpaolo.
CDP holds an 8.1% stake in Euronext, the same as France's Caisse des Depots, while Italy's biggest bank Intesa San Paolo owns 1.55%.
CEO’s Comments on Growth and 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 Over Milan Bourse Leadership
Treasury-controlled 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 Reassurance to Italian Lawmakers
"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.
Ongoing Legal Proceedings
Signalling that the dispute over the head of Borsa Italiana is far from being settled, a source familiar with CDP's thinking of the matter said the state lender was pressing ahead with plans to lodge a new legal case in Amsterdam, after a court rejected a first attempt.
(Reporting by Giuseppe Fonte; Editing by Alexander Smith and Gavin Jones)
