Stock exchange merger approved with conditions

The Justice Department on Thursday said it will approve the merger of the New York Stock Exchange Euronext and Germany’s Deutsche Boerse, if certain conditions are met.

The decision leaves the approval of the European Commission as the last obstacle to completing the $9 billion deal. 

The department outlined a settlement in which it would approve the merger if Deutsche Boerse sells its 31.5 percent stake in Direct Edge Holdings and agrees to other restrictions.

The department’s antitrust division said that without the restrictions, the merger of NYSE Euronext and Deutsche Boerse would have substantially lessened competition for stock trading, listing services and data products. It noted that Direct Edge is the fourth-largest exchange operator in the United States.

On Thursday, DOJ filed suit in federal court to block the merger, and simultaneously filed the settlement proposal.

“The remedy ensures that participants in the markets for U.S. equities-exchange products and services will continue to receive the full benefits of robust competition in the form of competitive prices and increased innovation,” said Sharis Pozen, the department’s top antitrust official.

NYSE Euronext welcomed the announcement

“We are very pleased to have received the approval of the DOJ, an important milestone on our path to completing our compelling Trans-Atlantic combination,” said Duncan Niederauer, the CEO of NYSE Euronext.

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