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Euronext completes acquisition of Irish Stock Exchange

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Euronext has completed its acquisition of the Irish Stock Exchange, following regulatory approval of the deal.

The deal means the ISE now operates under the business name Euronext Dublin, joining Euronext’s five other core countries. Deirdre Somers will remain as chief executive of the newly named body, and will join the managing board of Euronext with responsibilities to develop the Irish equity market and the centre of excellence in listings of debt and funds, and exchange traded funds (ETF).

“As the only pan-European exchange operator, Euronext is uniquely positioned to welcome independent exchanges such as the Irish Stock Exchange, now Euronext Dublin, that want to join its federal model and benefit from its single cross-country liquidity pool, its state-of-the-art proprietary technology, and its single rule book,” said Stéphane Boujnah, Euronext chief executive.

“We have a strong growth plan for our new combined Group, to strengthen our leadership in debt and funds listings, and to be the entry point for ETF growth, while generating synergies through the integration of Euronext Dublin. This significant extension of the federal model will also reinforce Euronext’s post-Brexit strategic position and allow the group to capture growth opportunities that arise, with a disciplined M&A approach.”

The combined group has more than 37,000 listed bonds and 5,600 funds, making it the largest centre for debt and funds listings in the world. It also has 1,050 listings for ETFs.

The company said there were significant growth opportunities for the combined group, including offering a single entry point to Europe for investors trading globally, and increasing market choice to existing and future Irish-listed companies and the Irish capital markets’ ecosystem.

The deal is expected to yield €6 million in pretax cost savings by 2020 due to the migration to Euronext’s new proprietary trading platform, the aggregation of a pan-European offering on market data as Euronext Dublin moves to Euronext’s platform, and through group support functions.

Euronext Dublin will be consolidated in Euronext financials from April 1st.

Ms Somers described it as “a historic day” for Irish capital markets.

“We are excited to be part of the Euronext federal model and the opportunities that it delivers to listed companies and Irish enterprises to access wider pools of international capital and corporate services,” she said. “We are looking forward to building on our reputation as a global leader in debt products to develop the Euronext centre of excellence in listings of debt and funds, and ETFs to meet market needs.”

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