EEX’s Acquisition Faces EU Antitrust Review

The European Energy Exchange (EEX), a prominent entity within Deutsche Boerse, is making waves with its bid to acquire Nasdaq’s European power trading and clearing business. This bold move, however, has caught the attention of EU antitrust regulators who are highlighting its pivotal role in shaping Europe’s energy market dynamics.

In a surprising twist, the European Commission, the watchdog safeguarding competition across the 27-country European Union, has been tapped by Denmark, Finland, Sweden, and Norway to thoroughly assess this deal. This request, although unconventional, underscores the deal’s significance, even though it doesn’t meet the standard EU merger rules based on turnover thresholds.

In an agreement unveiled in June, Nasdaq is set to shift its existing open positions in Nordic, French, and German power futures, as well as European carbon emission allowance futures (EUAs), over to EEX’s European Commodity Clearing (ECC).

Steering the helm of Europe’s electricity and natural gas exchange, EEX boasts a noteworthy 800 participants under its umbrella.

Interestingly, the Commission underscores that these two companies stand as the exclusive facilitators of services enabling on-exchange trading and subsequent clearing of Nordic power contracts. As this transformational transaction enters the spotlight, it’s poised to reshape the energy landscape across the continent.

Source: Reuters