SIX, the Swiss stock exchange operator, wants to expand its business in Spain and looks set to succeed with its takeover bid in Madrid.
If SIX is successful with its bid to buy Bolsas y Mercados Españoles (BME), it will propel the operator of the Swiss stock exchange to No. 3 spot among European exchange firms. Analysts at investment bank Jefferies expect the Swiss bid to trump rival offers.
It seems unlikely that Euronext, which also wants to buy BME, can outbid the Swiss, said Jefferies’ analysts Tom Mills and Julian Roberts, according to the «Financial News» (behind paywall). SIX offered almost 50 percent more than the average share price of BME had been in the six months before the offer.
Bigger Merger Yet to Come?
Jos Dijsselhof, the chief executive officer of SIX, wants to grow not only in Switzerland and in the European Union, but use the combined strength of SIX and BME to add in emerging markets as well.
In their analysis, the Jefferies experts also said that a merger between SIX/BME and Euronext would make sense going forward. Dijsselhof, who once had been interim CEO of the multinational exchange operator, would have plenty of know-how needed to run such a complex structure.