SIX and Euronext to compete for Spain’s BME
19 November 2019 Zürich
Image: Shutterstock
Swiss financial services provider SIX Group is facing competition from Euronext, the pan-European exchange, in its bid to acquire the Spanish Bolsa de Madrid (BME) stock exchange.
SIX Group has laid down an all-cash tender offer for the Spanish exchange in order to create a “top-three European financial markets infrastructure group” to pursue ‘growth opportunities and strategic initiatives.
Meanwhile, Euronext is also considering making an offer for BME and confirmed that it is in talks with its board of directors, “which may or may not lead to an offer being made”.
SIX’s all-cash voluntary tender offer is for 100 percent of the share capital of BME for €34 per share, implying a total equity value of €2,843 million.
The offer represents a premium of 47.6 percent over BME’s six-month volume weighted average share price and 33.9 percent over its closing price of €25.4 on 15 November.
SIX explained that it is comparable with BME as they are vertically-integrated and diversified, profitable, business models, operating along the entire value chain (pre-trade, trade, post-trade).
The proposed transaction, SIX believes, would allow both companies to enhance their home market positions and strengthen Europe’s importance in global markets.
According to SIX, it would also create the potential for Swiss asset managers to enhance their presence in the EU as it would leverage BME’s capabilities as the preferred platform of the combined business to carry out new potential ventures and business opportunities in this region.
SIX also plans for BME to be the business hub and interconnection with the Latin American markets, and to increase the appeal for BME’s Latin American and Middle East and Africa partnerships.
Jos Dijsselhof, CEO of SIX, commented: “It is intended that BME will continue to operate independently with its existing management team, regulated by the CNMV as now.”
“With our combined scale efficiencies in technology and securities services, as well as the development of centres of excellence to support best practices and an enhanced product range for both companies, this is a highly compelling combination.”
Dijsselhof added: “This proposed transaction will give us the capability to invest in both groups and create a very strong platform to compete and innovate in the global financial market infrastructure sector.”
SIX noted that it intends to preserve and strengthen BME’s positioning in Spain by keeping, at least for a transitional period of 4 years, the current brands of BME and BME’s current business activities, headquarters, office locations and its strategy in Spain.
It was further added that the offer will be subject to the following conditions and requirements: minimum acceptance level of at least 50 percent plus one share of BME’s share capital; authorisation of the transaction or non-opposition by the Spanish National Commission on Markets and Competition and the Spanish Securities Exchange Commission; and approval from the Spanish Government.
SIX Group has laid down an all-cash tender offer for the Spanish exchange in order to create a “top-three European financial markets infrastructure group” to pursue ‘growth opportunities and strategic initiatives.
Meanwhile, Euronext is also considering making an offer for BME and confirmed that it is in talks with its board of directors, “which may or may not lead to an offer being made”.
SIX’s all-cash voluntary tender offer is for 100 percent of the share capital of BME for €34 per share, implying a total equity value of €2,843 million.
The offer represents a premium of 47.6 percent over BME’s six-month volume weighted average share price and 33.9 percent over its closing price of €25.4 on 15 November.
SIX explained that it is comparable with BME as they are vertically-integrated and diversified, profitable, business models, operating along the entire value chain (pre-trade, trade, post-trade).
The proposed transaction, SIX believes, would allow both companies to enhance their home market positions and strengthen Europe’s importance in global markets.
According to SIX, it would also create the potential for Swiss asset managers to enhance their presence in the EU as it would leverage BME’s capabilities as the preferred platform of the combined business to carry out new potential ventures and business opportunities in this region.
SIX also plans for BME to be the business hub and interconnection with the Latin American markets, and to increase the appeal for BME’s Latin American and Middle East and Africa partnerships.
Jos Dijsselhof, CEO of SIX, commented: “It is intended that BME will continue to operate independently with its existing management team, regulated by the CNMV as now.”
“With our combined scale efficiencies in technology and securities services, as well as the development of centres of excellence to support best practices and an enhanced product range for both companies, this is a highly compelling combination.”
Dijsselhof added: “This proposed transaction will give us the capability to invest in both groups and create a very strong platform to compete and innovate in the global financial market infrastructure sector.”
SIX noted that it intends to preserve and strengthen BME’s positioning in Spain by keeping, at least for a transitional period of 4 years, the current brands of BME and BME’s current business activities, headquarters, office locations and its strategy in Spain.
It was further added that the offer will be subject to the following conditions and requirements: minimum acceptance level of at least 50 percent plus one share of BME’s share capital; authorisation of the transaction or non-opposition by the Spanish National Commission on Markets and Competition and the Spanish Securities Exchange Commission; and approval from the Spanish Government.
NO FEE, NO RISK
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