Derivatives exchange Eurex has finally gained a foothold in the US with its $2.8 billion cash acquisition of electronic options market the International Securities Exchange (ISE) – announced at the end of April. However, some industry observers are questioning the value of the deal. Eurex, which is jointly owned by Deutsche Börse and Swiss Exchange (SWX), will pay $67.50 per ISE share, which amounts to almost 50% more than the company’s market closing price just before the takeover announcement. The ISE, meanwhile, will retain its current management and governance structure and will continue to operate as a separate SEC-regulated entity, leading some to question what the merger will bring the European exchange other than presence in a new market.
| "It’s difficult to justify that price unless you’re really going to drive synergies out of it, and at this stage it’s not clear what those synergies will be" |
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"It’s difficult to justify that price unless you’re really going to drive synergies out of it, and at this stage it’s not clear what those synergies will be. I think the ISE has got a very good price for their stock," says Octavio Marenzi, Paris-based chief executive of consultancy firm Celent, which analyses global listed markets.