Euronext wants to take over Athens Stock Exchange

Pan-European stock operator Euronext is negotiating the acquisition of the Athens Stock Exchange, in a share transaction worth 399 million euros ($470 million), Reuters reports. Euronext operates markets in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. It is listed on the Amsterdam Stock Exchange, and its trade clearing system is based in Rome. The group facilitates trading for about 2,000 listed companies, with a combined market capitalization of more than 6.6 trillion euros, according to greekreporter.com.

Euronext wants to offer one new share for every 21 shares held by Athens Stock Exchange investors, valuing the Greek stock operator's share at 6.90 euros. Yesterday, at 12:00 local time, Hellenic Exchanges-Athens Stock Exchange SA shares were trading at 6.87 euros, up almost 14% from the previous day's close.

The Greek Finance Ministry welcomed the offer for the Athens stock exchange and said in a statement that it viewed the possible deal "positively.”

According to ekathimerini.com, the ministry said: "Ten years after the imposition of capital controls, a possible acquisition of the Athens Stock Exchange by Euronext would represent a tangible vote of confidence in the stability and positive trajectory of the Greek economy.”

However, the ministry noted that negotiations were still ongoing, stressing: "This is a commercial discussion at an early stage, which may or may not lead to an agreement.”

The potential transaction would be in line with Euronext's ambitions to strengthen European capital markets, as the pan-European operator sees fragmentation as one of the reasons for the competitiveness gap with US markets.

Since the beginning of the year, Euronext has launched the Common European Prospectus and has entered into a partnership with Deutsche Börse to counter the "flight” of initial public offerings from Europe to the United States.

• Increased liquidity and attractiveness for the Athens Stock Exchange, if it joins the Euronext network

The proposed acquisition is seen as a strategic move to integrate the Greek capital market into a pan-European ecosystem. If successful, the Greek market would join a network that has over 1,800 listed companies, increasing its liquidity.

Analysts say that integration into Euronext would significantly increase the attractiveness of the Athens Stock Exchange for foreign investors: as part of a reputable group, the Greek stock exchange would gain increased visibility and credibility, instead of being perceived as an independent entity, writes greekreporter.com.

According to Euronext, a possible collaboration with the Athens Stock Exchange "would strengthen Euronext's strategy of integrating European capital markets, offering opportunities for growth and synergy."