Summary
Cboe Global Markets, Inc. (CBOE) announced on December 10, 2019, that it has entered into a definitive agreement to acquire the remaining shares of European Central Counterparty N.V. (EuroCCP). This strategic acquisition, funded by existing cash, is expected to close in the first half of 2020, subject to regulatory approvals and the establishment of a supporting liquidity facility at EuroCCP. The acquisition of EuroCCP, a leading equities and fixed income clearing house, signifies Cboe's commitment to expanding its post-trade services and strengthening its European presence. The planned Euro 1.5 billion liquidity facility will be a committed syndicated credit facility available to EuroCCP, with fees and interest on borrowings guaranteed by a Cboe affiliate. Investors should monitor regulatory approvals and the finalization of the liquidity facility terms for potential impacts on the transaction's completion and Cboe's financial obligations.
Key Highlights
- 1Cboe Global Markets (CBOE) to acquire remaining shares of European Central Counterparty N.V. (EuroCCP).
- 2Acquisition expected to close in the first half of 2020.
- 3Transaction will be funded using Cboe's existing cash on hand.
- 4Deal is subject to customary closing conditions, including regulatory approvals.
- 5A Euro 1.5 billion committed syndicated credit facility is planned to support EuroCCP post-acquisition.
- 6Fees and interest on borrowings for the liquidity facility will be guaranteed by a Cboe affiliate.
- 7The acquisition aims to enhance Cboe's post-trade capabilities and European footprint.