Euronext, Europe's largest stock exchange operator, is ready to consider a merger with its biggest rival, Deutsche Boerse, according to a report by the Financial Times.
Combining the two exchange businesses could create a European market of what Euronext chief executive Stephane Boujnah described to the FT as planetary scale. He cautioned that a full merger would need to overcome significant regulatory hurdles.
Boujnah said no talks were currently taking place between Euronext and Deutsche Boerse.
What each exchange controls
Euronext runs trading venues in eight countries, including Paris, Amsterdam and Milan, alongside businesses in post-trade operations, clearing and energy markets. The company has a market capitalisation of 16 billion euros.
Deutsche Boerse operates the Frankfurt Stock Exchange as well as Eurex, one of the world's largest derivatives trading platforms. The German exchange is valued at roughly 50 billion euros.
A history of stalled attempts
The two exchanges have circled each other before without reaching a deal. Deutsche Boerse withdrew a takeover proposal for Euronext in 2006, and a merger attempt in 2012 was blocked by the European Commission on antitrust grounds.
In 2023, executives from both companies discussed setting up a joint venture for European listings, aimed at strengthening their position against competition from the United States.
Shifting regulatory mood
The European Union is currently changing its approach to antitrust regulation and showing greater willingness to let European companies pursue deals that would help them compete with global rivals. German Chancellor Friedrich Merz has also called for the creation of a single European stock exchange.
Boujnah said any combination of the two exchanges would need to be economically justified for shareholders, rather than driven by political direction.
Euronext is the operator behind several of the continent's best-known bourses, while Deutsche Boerse's Eurex platform is a major hub for trading futures and options. A tie-up between the two would bring together listing, clearing, derivatives and energy-market operations under one roof, at a time when European policymakers have grown more focused on building financial infrastructure able to rival exchanges in the United States and Asia.
