NEW YORK (Reuters) - The head of Deutsche Boerse AG (DB1Gn.DE), which is working on sealing its $9 billion takeover of NYSE Euronext NYX.N, said exchange operators must go global to survive and cannot focus only on local markets.
Reto Francioni, the German market’s chief executive, predicted at a conference hosted by Baruch College that there will soon be a very limited number of global operators.
The comments come on a day that two sources with knowledge of the situation told Reuters that European Union regulators will formally object this week to the proposed merger, a move that was expected and that may force the companies to offer concessions to ease competition concerns.
The EU’s “statement of objections” usually sets out competition concerns that it identified. Deutsche Boerse and NYSE Euronext can seek to allay regulatory worries by trying to persuade the commission it is wrong or offer remedies to fix the problems.
On the sidelines of the New York conference, Francioni declined to comment on the statement of objections.
“It has become a strategic necessity in a global economy, exchanges must go global as well,” he said in his speech. “It is not enough to focus on local markets. You have to expand and seek new partners.”
Reporting by Jonathan Spicer; Editing by Tim Dobbyn