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Dubai: The 40-day takeover battle for the Nordic exchanges operator OMX fought across three continents came to a grinding halt yesterday as the rivals decided to join hands to launch a global exchange platform.
Under the agreement, Borse Dubai will acquire OMX shares at 230 Swedish crowns each and then exchange them for a 19.99 per cent stake in the Nasdaq group and $1.7 billion (11.4 billion crowns) in cash.
Even as Borse Dubai and Nasdaq began to celebrate their new partnership, Qatar opened a new front in the battle for OMX with a new stake.
The Qatar Investment Authority (QIA) said yesterday it had bought a 9.98 per cent stake in OMX as part of a strategy to take "supportive holdings in the European exchange infrastructure". As part of the deal between Dubai and Nasdaq, Qatar's overtures to buy Nasdaq's 31 per cent stake in the London Stock Exchange was spiked.
Qatar yesterday acquired a 20 per cent stake in LSE from undisclosed US shareholders.
"We are certain to leverage on both Nasdaq and OMX's intrinsic strengths and brand values across the Middle East and Asia. A foothold in London has opened immense opportunities future consolidation of stock exchanges," Soud Ba'alawy, vice-chairman of Borse Dubai, told Gulf News from Stockholm.
Nasdaq said the deal paves the way for it to gain access to the Asian and Middle East markets.
"These developments herald an important step forward for Nasdaq. Taken together, these will provide us with a footprint unlike any other exchange, creating a global exchange leader," said Robert Greifeld, president and chief executive officer of Nasdaq.
Borse Dubai said yesterday this deal will go a long way in achieving Dubai's objective of becoming a global financial centre. "By entering into this partnership, we will benefit from Nasdaq's world leading brand, technology and platform," said Eisa Kazim, chairman of Borse Dubai.
- With inputs from Reuters
Consolidation phase among global stock exchanges
New York Stock Exchange: Merged with Euronext, operator of five European markets, including Liffe, the London financial futures market.
London Stock Exchange: Had formal offers from Deutsche Borse, Euronext, Macquarie, the Australian bank, OMX and Nasdaq. Now, taking over Borsa Italiana.
Deutsche Bourse: Bidding for International Securities Exchange. Failed suitor for LSE and Euronext. Had a joint venture with Chicago Board of Trade.
OMX: Swedish-Finnish financial services company that operates seven Nordic Exchanges.
Borse Dubai: Holding company of DIFX and DFM has made $4 billion bid for OMX.
Nasdaq: Enters deal with Borse Dubai to acquire OMX in exchange for 19.99 per cent shares and $1.7 billion in cash. As part of the deal, Borse Dubai acquires 28 per cent stake in LSE and Nasdaq acquires about 33 per cent stake in Dubai International Financial Centre.
QIA: Qatar Investment Authority emerges as a new player in OMX takeover battle. The QIA said yesterday it has bought a 9.98 per cent stake in the Swedish exchange operator. Qatar has already bought a 20 per cent stake in LSE.
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