Exchange group NYSE Euronext has entered into a strategic partnership with The State of Qatar to acquire 25% of the Doha Securities Market (DSM).
The State of Qatar and NYSE hope to enhance Doha’s existing cash equities business by building a new, internationally integrated cash and derivatives exchange, built on the technology and product expertise of NYSE.
The stake was purchased for US$250 million, the largest investment ever made by NYSE in a foreign exchange. The London Stock Exchange was also reported to have made a bid, but a statement from NYSE claimed that it had submitted “the most attractive offer as a part of a competitive bidding process.”
His Excellency Sheikh Hamad bin Jassim bin Jabor Al-Thani, Prime Minister and Minister of Foreign Affairs of Qatar, said in a statement, “We are delighted to partner with NYSE Euronext, which has a global reputation for excellence. It’s a significant endorsement of Qatar’s importance in the world’s capital markets. Our country’s financial markets will be an integral part of a group that links together the world’s major trading centers across the US and Europe, and now the Middle East.”
NYSE will receive three of the eleven seats on the DSM’s board of directors and act as a partner managing the operation of the new exchange, including senior appointments and the provision of technology services.
A minority share stake in the DSM will be sold via a domestic IPO within the next three years. The deal is expected to be finalised before the end of 2008.