Marcus Cake

Recent deals confirm that the process of industry consolidation is occurring at a global level. The major players have interest in markets beyond those of Europe and the United States. Some of my recent articles have provided an analysis of market share and described some of the activity in different markets. Click here to review all articles in the Stock exchange category.

NYSE Asia spree spurs ASX, The Australian, 12th January 2007

Extract:

• NYSE Group is on the verge of completing its $US15 billion ($19.25 billion) acquisition of Paris-based Euronext NV to create the first transatlantic equity market, and yesterday led the group that agreed to buy 20 per cent of India’s largest stock market. NYSE Group chief executive officer John Thain has said the world’s biggest stock exchange intends to dominate trading in the three most widely held currencies: dollars, euros and yen.
• A banker close to the ASX suggested that the NYSE’s India deal got investors thinking about a possible regional consolidation.

NYSE-led team buys stake in India bourse, Yahoo finance, 10th January 2007

Extract:

• The New York Stock Exchange took another step on Wednesday in building the world’s first truly global financial market, leading a team of investors to buy a 20 percent stake in India’s largest bourse.
• The $460 million deal to buy into Mumbai-based National Stock Exchange is the latest move toward the consolidation of global markets. The NYSE has been leading the trend, striking a deal to buy European stock exchange operator Euronext NV and now making its first entry into Asia.
• NYSE Group Inc. Chief Executive John Thain has made no secret of his company’s intentions to tap into the aggressive growth in emerging markets. The deal in India gives the NYSE access to the country’s bustling business environment — where growth in gross domestic product is second only to China among the world’s major economies.
• The deal gives the NYSE direct exposure to both Indian stocks and derivatives. Further, it increases the exchange’s ability to attract high-profile Indian companies with U.S. listings — something it needs to accomplish as it competes with rival Nasdaq Stock Market Inc.
• Joining the NYSE in buying the 20 percent stake is investment bank Goldman Sachs Group Inc. and private equity firm General Atlantic. Also taking an equal stake is the private equity division of Japanese media and financial conglomerate Softbank Corp. Thain, who said the deal complements the NYSE’s global growth strategy, worked for Goldman Sachs for some two decades. General Atlantic is one of the exchange’s biggest shareholders since it went public last March.