Euronext chief says he is eyeing Euroclear as an acquisition target in Bloomberg interview

CSD and exchange operator is observing Euroclear with “a lot of interest” its CEO Stephane Boujnah has said during an interview with Bloomberg.

Euronext’s chief executive has told Bloomberg that the exchange group believes Euroclear would be a “natural fit” as it assesses its next acquisition targets.

Stephane Boujnah added that the Nordics were also a target following recent successful deals – which have included the addition of Danish Central Securities Depository, VP Securities, back in 2020.

The central securities depository (CSD) and exchange operator has around €1 billion to spend on acquisitions as part of a strategic plan to add high value-added acquisitions aimed at diversifying and strengthening the business profile of the group, with a specific focus on Europe.

Euronext is currently the eighth-largest shareholder of Euroclear, owning 3.34%.

Euroclear declined to comment on the story.

Euronext outlined big plans in its 2024 strategic plan, which saw the shock announcement that it would break away from using LCH as its clearing house for cash equities and derivatives and move to its new Italian central counterparty (CCP) following the acquisition of Borsa Italiana.

The group said it also plans to combine its four CSD brands under one new umbrella brand while keeping a strong local presence and identity as part of a strategic plan to 2024. 

The pan-European exchange group operates Euronext VPS in Norway, Interbolsa in Portugal, Monte Titoli in Italy, alongside VP Securities in Denmark. The four brands will now be known as Euronext Securities, currently holding €6.3 trillion in assets under custody, and representing 120 million yearly settlement instructions and more than 7,700 issuers.