EEX's Nasdaq deal risks probe as remedies seen as insufficient, sources say

European Energy Exchange AG

03/06/2024 16:48

(Adds the European Commission, EEX decline comment, no
immediate response from Nasdaq, details)
    By Foo Yun Chee
       BRUSSELS, June 3 (Reuters) - European Energy Exchange's
 T3PA.DE  Nasdaq  NDAQ.O  deal risks a full-scale investigation
by EU antitrust regulators unless the Deutsche Boerse  DB1Gn.DE 
unit beefs up remedies to address competition concerns, people
with direct knowledge of the matter said on Monday.
    EEX is seeking to acquire Nasdaq's European power trading
and clearing business Nasdaq Power, whose platforms are of key
significance for users and businesses in the Nordics. It
submitted remedies to the EU on May 27 but did not make details
public.
    The EU antitrust watchdog is unlikely to seek feedback from
users and rivals on the remedies already submitted, a sign that
these are insufficient, the people said.
    The European Commission, which acts as the EU competition
enforcer, is expected to open a full-scale investigation into
the deal following the end of its preliminary review on June 26
unless EEX beefs up its remedies in the coming days, they said. 
    The Commission, which last month asked rivals and customers
whether the deal may allow EEX to bundle its products to expand
its market power and also push up prices, and EEX declined to
comment. Nasdaq did not immediately respond to a request for
comment.
        EEX and Nasdaq last year said the deal posed no
significant threat to competition in Denmark, Finland, Sweden,
Norway or any other EU country, that it would not eliminate
competition between the two companies, and that market reaction
had been positive.

 (Reporting by Foo Yun Chee; Editing by Jan Harvey and Ros
Russell)
 ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters
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