European regulators said on Tuesday they do not intend objecting to the proposed merger of Euronext and the NYSE, removing a hurdle to the completion of the $10 billion transatlantic alliance.
A final decision by a committee of Euronext regulators will depend on certain assurances and commitments from the bourses, Dutch market regulator AFM said in a statement on behalf of a committee of European regulators.
Euronext in June accepted a $10 billion takeover proposal from NYSE Group Inc. -- a deal which both companies say is a merger of equals -- and Euronext's chief executive has said the groups were close to obtaining agreement for the deal from the U.S. Securities and Exchanges Commission (SEC) and European regulators.
The European regulators are working together with the SEC on a memorandum of understanding, to be signed when the merger receives required approvals and the offer to merge is unconditional, the AFM said.
Euronext and NYSE have proposed to put their European operations -- which include the Paris, Amsterdam, Lisbon and Brussels bourses, and London's Euronext.Liffe derivatives market under the management of a Dutch foundation to keep them out of reach of U.S. regulations such as the Sarbanes-Oxley legislation.