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Spanish government waves through SIX bid for BME
Posted on Wednesday, 25 March 2020 11:20
The Spanish government has given its seal of approval to the planned acquisition of BME, the operator of the Madrid Stock Exchange, by Swiss peer SIX.
In a statement issued by the Economy Ministry, it said the transaction will now be referred to financial regulator Comisión Nacional del Mercado de Valores (CNMV) for its green light, before finally going before the target’s shareholders.
The state added that the acquiror has made commitments which would enable the target to continue as a financing mechanism for Spanish companies, but stopped short of giving any details on those promises.
CNMV said its approval would be a formality.
It had already recommended that the state wave the deal, the most valuable deal targeting a securities and commodities exchange operator to have been announced worldwide during 2019, according to Zephyr, the M&A database published by Bureau van Dijk, through.
A spokesman for SIX told Reuters the move is a major milestone for the business.
The Swiss Stock Exchange operator agreed to acquire BME in November of last year, offering to pay EUR 34.00 in cash per item of stock, thereby valuing the deal at EUR 2.84 billion.
A minimum acceptance level of 50.0 per cent was set and completion was originally earmarked for before 31st March 2020.
SIX beat off competition from the likes of Deutsche Boerse and Euronext to acquire the business.
Other high value deals targeting securities and commodities exchanges announced last year include JP Morgan cutting its stake in Hong Kong Exchanges and Clearing by 1.7 per cent, raising 657.00 million in the process.
This was the second-largest deal targeting a company in the sector to have been announced in 2019.
It was followed by the purchase of a majority stake in Peru-based Holding Plaza by Arauco Holding Peru.
© Zephus Ltd