Nasdaq bid for NYSE blocked by regulator
Nasdaq's $US11 billion bid for the New York Stock Exchange has been nixed by antitrust regulators.
Nasdaq’s bid to buy the bigger New York Stock Exchange has been blocked by US competition watchdogs.
The antitrust division of the US Justice Department has stymied the $US11 billion bid, ruling that it would reduce competition.
Christine Varney, head of the division, said: “The acquisition would have removed incentives for competitive pricing, high quality of service, and innovation in the listing, trading and data services these exchange operators provide to the investing public and to new and established companies that need access to US stock markets.”
Joining the Nasdaq bid was IntercontinentalExchange, a derivatives trader that would have taken over the derivate functions of NYSE Euronext.
Instead, NYSE Euronext is pursuing a $US9 billion merger with Deutsche Brse, a bid that also faces regulatory hurdles.
Nasdaq’s failed NYSE bid isn’t the only stock exchange merger to be nixed by regulators recently.
Last month the planned merger of the Australian Stock Exchange with the Singapore Stock Exchange was stopped by the Australian government.
NBR staff
Tue, 17 May 2011
Tue, 17 May 2011
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Nasdaq bid for NYSE blocked by regulator
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