CBOE completes $3.4 billion Bats acquisition

CBOE and Bats Global Markets complete merger as the LSE-Deutsche Boerse deal remains on the verge of collapse.

CBOE has officially completed its acquisition of Bats Global Markets in a cash and stock transaction valued at $3.4 billion.

Several changes to the leadership team of the now combined exchange operator were announced, although it was confirmed Bats Europe would remain as a standalone business for the time being with current CEO, Mark Hemsley continuing to run the unit.

Edward Tilly, chairman and CEO of CBOE, said both exchange groups have been working hard over the past few months to create a ‘seamless integration plan’.

The proposed acquisition was announced in September last year and is set to provide CBOE - which has avoided takeovers and acquisitions in the past - a gateway into the European equity and exchange-traded fund (ETF) markets.

CEO at Bats Global Markets, Chris Concannon, wrote to the exchange’s clients, issuers and supporters ahead of the completion of the acquisition and said the pending combination with CBOE “doesn’t spell the end of the journey for Bats.”

“As we prepare to become part of CBOE, working alongside CEO Ed Tilly and his great team, we are excited for the future of Bats and the opportunity to make an even bigger impact on global markets,” he added.

Concannon will now assume the position of chief operating officer and president at CBOE.

News of the completed acquisition follows the apparent collapse of the proposed mega-merger between the London Stock Exchange (LSE) and Deutsche Boerse earlier this week.

The deal was scuppered by the European Commission’s request the LSE sells its 60% stake in fixed income trading platform MTS.

The Commission raised issues over bond and repo trading feeds provided through MTS and urged the LSE to sell its majority stake in the business to settle concerns.

LSE has refused to sell the MTS business and stated that as a result the Commission is unlikely to provide clearance for the merger.