Euronext rules out merger with Deutsche Börse in near future

The chief executive of pan-European stock exchange operator Euronext, Stephane Boujnah, has ruled out a merger with Deutsche Börse in the near future, even if such a deal "would make sense.”

"We have already tried three times to merge with Deutsche Börse. I don't think there will be a merger in the near future,” Boujnah said last week during a hearing in the Italian Parliament, according to globalbankingandfinance.com.

The prospect of a merger between Euronext and Deutsche Börse has fueled fears in Italian government circles that Euronext could scale back its operations in Italy and favor listings on other markets.

Asked whether a merger with the German stock exchange would cause Italian shareholders to lose influence in Euronext, Boujnah said such a deal would dilute the stakes of all major shareholders, including Italian state lender Cassa Depositi e Prestiti (CDP) and Intesa Sanpaolo. He said: "Growth leads to dilution. If you want to have full control, you have to stay within your own limits.”

CDP owns an 8.1% stake in Euronext, as does France's Caisse des Depots, while Intesa San Paolo, Italy's largest bank, owns 1.55%.

Italian lawmakers questioned Boujnah about Euronext's plans for the Milan Stock Exchange, which the pan-European group acquired from London Stock Exchange Group in 2021.

• CDP has filed a legal challenge against Euronext

It should be noted that CDP, controlled by Italy's Finance Ministry, has filed a legal challenge against Euronext over its power to appoint the Milan Stock Exchange's CEO. The dispute is part of a broader attempt by CDP to gain greater influence at Euronext, an initiative that Reuters previously reported aimed at appointing an Italian chief executive to lead the pan-European exchange at a later stage.

"I don't understand how we got to this point because of something that is just a misunderstanding,” Boujnah said, assuring Italian lawmakers that Euronext had no intention of cutting its deal with Borsa Italiana.

Signaling that the dispute over the management of Borsa Italiana is far from resolved, a source familiar with CDP's approach to the matter said the state lender was pressing ahead with plans to file a new lawsuit in Amsterdam after a court rejected an initial attempt.