Alexa

Germany's Deutsche Boerse in talks to buy U.S. options exchange ISE

Germany's Deutsche Boerse in talks to buy U.S. options exchange ISE

German stock exchange operator Deutsche Boerse AG said Monday that it has reached an agreement to take over U.S.-based options exchange International Securities Exchange Holdings for US$2.8 billion (euro2.05 billion) in cash.
The Deutsche Boerse statement said International Securities shareholders would get US$67.50 (euro49.48) per share. The acquisition would make Deutsche Boerse a major player in the U.S. options trading business, since ISE is the largest options market in the U.S. for individual stocks, including stock-index options.
ISE is the second-largest options market behind the Chicago Board Options Exchange.
Deutsche Boerse said the deal would have to win a majority at an extraordinary ISE shareholders meeting, which it said would take place "as soon as possible," and would also require approval by the U.S. Securities and Exchange commission.
The purchase would be made through the derivatives exchange Eurex, which is jointly owned by Deutsche Boerse and the Swiss Stock Exchange SWX.
ISE would merge with a subsidiary of U.S. Exchange Holdings Inc., which is in turn a subsidiary of Eurex Frankfurt AG.
With consolidation sweeping the industry, Deutsche Boerse has been on the lookout for possible partnerships after it lost out to the NYSE Group Inc. in a bid to acquire European exchange operator Euronext and had two offers for the London Stock Exchange rebuffed.
The LSE fought off several other bids, including one from the Nasdaq Stock Market, which is now its largest shareholder. The Chicago Mercantile Exchange is fighting rival IntercontinentalExchange for the Chicago Board of Trade in a move to create the world's largest futures exchange
Derivatives _ which encompasses options and futures _ have been growing at a faster pace than traditional stock trading. To capture this growth, many exchanges have shifted their focus toward stock options and other financial instruments.


Updated : 2021-03-02 13:57 GMT+08:00