Euronext gains regulatory approval for Danish CSD takeover

Euronext confirmed in April plans to acquire Danish central securities depository VP Securities in the exchange group’s latest takeover.

Danish authorities have approved Euronext’s bid to acquire central securities depository (CSD), VP Securities, for €150 million as it looks to strengthen its post-trade business.

Euronext received clearance from the Danish Financial Supervisory Authority, which the exchange group said was the only condition to complete the transaction. The trading venue had secured majority support for the takeover from VP Securities’ shareholders, with 90.68% accepting Euronext’s offer upon gaining regulatory approval.

In April, Euronext confirmed plans to buy up to 100% shares of the shares in VP Securities for €150 million. The move will double Euronext’s depository business in size, and expand its custody and settlement capabilities with post-trade value-added services. The transaction is expected to close in the third quarter this year.

“The acquisition of VP Securities represents a major new milestone in the deployment of Euronext’s ambition to build the leading pan-European market infrastructure,” Stéphane Boujnah, CEO of Euronext, said when the deal was announced.

“The acquisition of VP Securities will position Euronext as a leading CSD operator in Europe, and as a leading player in the Nordic region because there is no European success without a Nordic dimension. This reinforcement of our post-trade activities will allow Euronext to pursue the diversification of its topline.”

VP Securities was established in 1980 and is based in Copenhagen. It was the first Nordic CSD to be granted a license for the Central Securities Depository Regulation (CSDR), and to join the European Central Bank’s Target 2 Securities settlement system.