LONDON — A German regulator has called for changes to the proposed $9 billion merger between Deutsche Börse and NYSE Euronext after raising concerns about how the deal would affect their operations in Frankfurt.
“We have communicated suggestions about how our concerns could be remedied,” said Wolfgang Harmz, a spokesman for the Hessian Ministry of Economy, the local German regulator for the Frankfurt exchange. He would not provide further detail on the proposed changes.
The local ministry has the power to revoke Deutsche Börse’s operating license and can forbid any changes to the ownership structure that result from the merger between Deutsche Börse and NYSE Euronext.
Mr. Harmz said any decision would come after the conclusion of the European Commission’s antitrust investigation, which is expected by the end of January 2012. Deutsche Börse was not immediately available for comment.
Local authorities are concerned about how the proposed deal would affect the companies’ continuing operations in Frankfurt, as well as whether management decisions would be made outside the German city, according to a person with knowledge of the matter.
In response to initial competition concerns by European regulators, the companies agreed in November to certain concessions. NYSE Euronext said it would sell its pan-European single-equity derivatives units, but not the options businesses in its home markets. Deutsche Börse said it would divest similar operations.
The companies added that they would give rivals access to Eurex Clearing, a clearinghouse for derivatives products, to offset regulatory concerns that the pending merger would lead to uncompetitive practices.
Both companies are adamant that any further concessions, particularly related to their fast-growing derivatives business, would put the merger in jeopardy.
“We want to pursue the transaction, but not at all costs,” Deutsche Börse’s chief financial officer, Gregor Pottmeyer, said in a statement last week. “Antitrust conditions should not be allowed to endanger the industry and economic logic of this transformational merger.”
Article source: http://feeds.nytimes.com/click.phdo?i=c164e9984b42caef64e07133e1981014
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