The London Inventory Exchange’s look for for a buyer strike a wall last thirty day period when the European Commission place the kibosh on a merger between the London Inventory Trade and Germany-based Deutsche Börse.
Other exchanges, these types of as the Chicago Mercantile Trade and the International Continental Trade, the mother or father enterprise of the New York Inventory Trade, have reportedly flirted with the idea of purchasing LSE.
But a recent observe penned by equity analysis analysts at Credit score Suisse, which explored the “strategic and financial deserves” of 14 merger eventualities between a variety of exchanges, says that a merger between Nasdaq and the London Inventory Trade would make the most feeling.
“A combination would generate a business enterprise products and services powerhouse that is levered to many secular development traits (indexing, industry info and know-how) with significant cross marketing chances (corporate remedies, IT products and services),” the lender explained.
With a industry cap of $eleven.forty six billion, Nasdaq is the third largest exchange in the United States, at the rear of the Intercontinental Trade ($35 billion), and the Chicago Mercantile Trade ($39 billion). The London Inventory Trade has a industry cap of $14.four billion.
According to Credit score Suisse, the merger could potentially boost Nasdaq’s “fast expanding” index business enterprise, and mix two of the most effectively-know “listing venues for world corporate and ETF listing and investing.”
Credit score Suisse says the deal would have a complete price of $seventeen billion (implying a price of £38 for each London Inventory Exchange share, or about $47.fifty for each share), a twenty% quality to present charges.
These kinds of a deal would give Nasdaq an even greater foothold on the European continent. The organization purchased the Nordic inventory industry OMX in 2007 for $3.seven billion, which opened it up to equity and derivative companies in Sweden, Denmark, Iceland, Finland and the Baltics.
A spokesperson from Nasdaq declined to remark.