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OFT clears merger between NYSE and Euronext

145/06    9 October 2006

The OFT today announced the clearance of the anticipated merger between NYSE Group, Inc and Euronext N.V., operators of the NYSE and Euronext stock exchanges.

The OFT focused its inquiry on the impact of the merger on UK customers, particularly in listing and equities trading, and concluded that no relevant competition concerns were raised. While a number of third parties raised concerns, these either did not relate to the prospect that the merger would substantially lessen competition in the UK or were otherwise unpersuasive in light of the weight of evidence available.

As always, this decision is without prejudice to the review by the OFT or other competition authorities of any other potential consolidation in this area.

NOTES

1. The Reference Test - The OFT has a duty to make a reference to the Competition Commission if the OFT believes that it is or may be the case that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
 
2. Under the Enterprise Act 2002 a relevant merger situation is created if two or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds 70 million; or as a result of the transaction, in relation to the supply of goods or services of any description, a 25 per cent share of supply in the UK (or a substantial part thereof) is created or enhanced.

3. The text of this decision will be published in the mergers section as soon as is reasonably practicable.

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