DealBook: European Regulators to Tell NYSE and Deutsche Börse of Merger Concerns

Mark Lennihan/Associated PressDuncan Niederauer, left, chief of NYSE Euronext, with Reto Francioni of Deutsche Börse, on video, at a news conference in February.

European regulators are sending a statement of objections to the Deutsche Börse and NYSE Euronext over their proposed $9 billion merger, a person with direct knowledge of the action said Tuesday. The move shows that the competition authorities will demand at least remedial action by the two companies.

The statement is being sent by the European Commission to the two companies this week, the person said. That person asked not to be identified because the objections had not been formally announced.

The commission had said in August that it would conduct an in-depth review of the proposed combination, citing ‘‘concerns in a number of areas, in particular in the field of derivatives trading and clearing.’’ That announcement came after the two companies’ shareholders in July gave their blessing to a deal, which would create a giant international market with big presences in stocks and options and a commanding position in European derivatives.

The issuing of a statement of objection is a normal part of the review, in which the authorities detail their antitrust concerns, and does not necessarily mean the deal is endangered. In addition to the derivatives and clearing concerns, it could encompass issues including job cuts and the preservation of financial activities in various cities.

Opponents of the proposed merger are hoping that the commission will demand that the companies sell the London International Financial Futures and Options Exchange, or Liffe, which Euronext acquired in 2002, five years before Euronext was itself acquired by the New York Stock Exchange. Such a move might lead the partners to reconsider the logic behind the tie-up.

NYSE Euronext and Deutsche Börse

Kevin McPartland, head of fixed income research at the TABB Group, said the European regulators were looking at the impact on a regional level, while antitrust authorities in the United States — who saw a combined entity competing globally with rivals in New York and Singapore — had taken a more global view in granting their approval.

If the companies were told to divest Liffe as a condition for approval, he said, ‘‘it would look a lot less appealing.’’ But he added: ‘‘There are enough potential compromises that they could work through most concerns.’’

Amelia Torres, a spokeswoman for the commission, declined to comment, beyond noting that the deadline for a decision was Dec. 13. NYSE Euronext and Deutsche Börse also declined to comment.

Reuters had earlier reported the statement of objections.

Michael de la Merced contributed reporting from New York and Jack Ewing from Frankfurt.

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