Euronext, a pan-European stock exchange giant, is seeking reforms to EU merger rules as it aims to expand beyond traditional operations and compete on a global scale. CEO Stéphane Boujnah believes that Europe needs to consolidate and revise antitrust regulations in order to keep up with countries like China and the US. Boujnah expressed optimism in recent shifts in the European Commission’s approach to merger rules, which may relax restrictions on market concentration to allow for more competitiveness and innovation within the industry. Despite concerns about potential monopolies, Boujnah argues that the EU should create European champions capable of competing globally in various sectors, similar to how Boeing and Airbus dominate the aeronautics industry.
In the past, a proposed merger between Euronext and Germany’s Deutsche Börse was blocked by the European Commission due to concerns about market dominance. However, Boujnah believes that the landscape has shifted, with competition now coming from US-based rivals like ICE, CME, and Cboe. He emphasizes the need for a more global perspective, particularly in the face of China’s rising prominence, and suggests that the balance between consumer satisfaction and producer strength should be reassessed to foster the growth of European champions. Boujnah also highlights Euronext’s expansion and diversification as it integrates Milan’s Borsa Italiana and focuses on organic growth through post-trade services like securities depositaries.
Despite potential barriers to cross-border mergers, Boujnah remains confident in the ability to navigate economic nationalism in Europe and facilitate deals between iconic companies. He stresses the importance of respect, transparency, and ensuring that all parties involved feel comfortable within the combined group. Boujnah dismisses concerns about Europe’s global competitiveness, citing the resilience of the euro and expressing his commitment to improving Europe’s position on the global stage. He exudes a sense of determination and loyalty to Europe, refuting pessimistic views and suggesting that those who believe Europe is falling behind should have been born elsewhere.
Nearing the release of a strategic plan on November 8th, Euronext is focused on significant organic growth and expanding its operations. Boujnah outlines the company’s ambition to strengthen its post-trade services and continue its evolution from a small entity carved out of the NYSE Euronext acquisition in 2014 to a diversified and robust pan-European operator. He remains undeterred by potential challenges and believes in Europe’s potential to thrive and succeed in the global market. To achieve this, he advocates for a reevaluation of antitrust regulations, a shift towards fostering European champions, and a commitment to transparency and cooperation in cross-border mergers. Boujnah’s vision for Euronext and Europe’s role in the global economy reflects his optimism, resilience, and unwavering dedication to the continent’s success.
