U.S.-based Cboe Global Markets Inc. agreed to acquire the Netherlands' European Central Counterparty NV for an undisclosed amount, subject to regulatory approvals.
Reports of a possible deal circulated in late November and discussions had reportedly been going for months. Cboe said the deal would enable it to develop equity derivatives trading and clearing operations in Europe.
Cboe noted that the deal would be dilutive to its earnings in the next three to four years, with an expected financial impact on its EPS in the range of 8 U.S. cents to 10 cents in 2020 and 2021. The company added that it plans to fund the acquisition through on-hand cash and expect to finalize the deal in the first half of 2020.
EuroCCP's daily clearing volumes average 4 million to 5 million, or €30 billion to €40 billion in value. It currently clears trades for 39 trading venues, representing about 95% of the equity landscape in Europe.
PJT Partners served as exclusive financial adviser to EuroCCP, with Allen & Overy acting as exclusive legal counsel and Greentarget as communications strategy adviser. Cboe tapped Macfarlanes LLP and Norton Rose Fulbright LLP as legal counsels on the deal.