Switzerland-based SIX is going head to head with Euronext in a bidding war for Spain’s Bolsas y Mercados Españoles.
BME operates the Spanish stock exchange and is the cornerstone of the Spanish markets.
SIX Group has tendered an all cash bid of around €2.8bn. If successful, the deal will create the third-largest European financial market infrastructure group.
Specifically, SIX is bidding for 100% of the share capital of BME at €34.00 per share. Such a bid implies a total equity value of €2.843bn.
The offer represents a premium of 47.6% over BME’s 6-month volume weighted average share price. Moreover, the bid is priced at 33.9% over its closing price of €25.40 on 15 November.
SIX expects to keep BME’s stand-alone listing in the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges.
Spanish bourse bidding war: Euronext v SIX
Meantime, Spanish-based Europa Press reports that France-based Euronext is also bidding for BME.
Euronext owns the main exchanges in Paris, Amsterdam, Brussels, Lisbon, Oslo and Dublin.
Romeo Lacher, Chairman of the SIX Board says: “A combination with BME will bring direct and immediate benefits to the stakeholders of both our institutions, at a time when consolidation in global financial markets infrastructure is accelerating. This is in line with SIX’s growth strategy and our commitment to serve customers with highly reliable infrastructure services and seamless access to capital markets.”
“This proposed transaction will give us the capability to invest in both groups. It creates a very strong platform to compete and innovate in the global financial market infrastructure sector.”
In August the London Stock Exchange Group agreed a $27bn deal to buy data and trading group Refinitiv.
Total financial services industry M&A deals announced in Q3 2019 were worth $57.3bn according to GlobalData’s deals database.
The value marked an increase of 21.9% over the previous quarter.