Street View: Proposed Deutsche Borse deal for Allfunds promises growth, but raises questions

Allfunds

28/11/2025 06:55

** German stock exchange operator Deutsche Boerse AG DB1Gn.DE is in exclusive talks to buy European fund trading platform Allfunds ALLFG.AS

** The talks are based on a non-binding offer of of 8.80 euros ($10.20) per Allfunds share, equal to about 4.7 billion euros

** Allfunds stock jumped 22% on Thursday, logging its biggest one-day rise on record; Deutsche Boerse closed 2% higher

DEAL 'MAKES SENSE' BUT ALSO RAISES QUESTIONS

** RBC Capital Markets says that the deal would "tick plenty of boxes but also raises questions"

** They add the deal would double Deutsche Boerse's funds services division and likely enhance its revenue and EBITDA growth profile

** The analysts, however, say they would anticipate some pushback on capital discipline citing the 33% bid premium, and note that synergies remain unclear

** J.P.Morgan says the acquisition would make "strategic sense", and potentially expand Deutsche Boerse's fund business geographical footprint

** "We note that IFS (Investment Fund Services) has historically had a very strong presence in Germany and Switzerland, while Allfunds has a stronger presence in Spain, Italy and France," says JPM, adding the integration could free up some excess capital

** Jefferies meanwhile calls the deal "compelling" and estimates it would result in a mid-to-single digit boost to Deutsche Boerse' EPS

** However, it expects that the merger of two biggest business-to-business fund platforms in Europe could bring regulatory attention, potentially delaying the completion

($1 = 0.8633 euros)

(Reporting by Mateusz Rabiega)

((Mateusz.rabiega@thomsonreuters.com;))