NYSE-Deutsche Boerse Merger Nixed by EU Regulators

EU regulators have nixed the proposed $11.2-billion merger between NYSE Euronext and Deutsche Boerse on concerns that the deal would create a lack of competition in the derivatives market, FOX Business's Charlie Gasparino reports.

NYSE Euronext will appeal the decision and plans to launch a big lobbying effort with politicians in Europe, according to Gasparino.

NYSE Euronext and Deutsche Boerse announced their intention to merge early last year in a landmark agreement that would create the largest exchange group in the world. Both companies secured shareholder approval for the merger in July and had been awaiting the outcome of a European Commission antitrust probe.

The deal has attracted strong criticism from a number of market participants -- including the London Stock Exchange, which has argued that the combined entity would "eliminate competition" in the European listed derivatives market by "creating insurmountable barriers to entry for other providers."

NYSE Euronext and Deutsche Boerse argued, however, that the deal would benefit the European trading community by providing nearly $4 billion in direct cost savings for customers.