Euronext has confirmed it is in discussions with the board of Hellenic Exchanges-Athens Stock Exchange (ATHEX) over a possible acquisition of the Greek market operator. The potential transaction would be structured as a share exchange, valuing ATHEX at €6.90 per share and the entire capital of the company at €399 million.

In a statement released on Monday, Euronext said the proposed deal would involve a fixed conversion rate of 21.029 ATHEX ordinary shares for each new Euronext share.

Based on Euronext’s closing price of €145.10 on June 30, the offer would value ATHEX at €399 million on a fully diluted basis. The offer remains subject to due diligence, and no final agreement has been reached.

Part of a Broader EU Market Consolidation Strategy

The move aligns with Euronext’s long-term strategy to consolidate European capital markets. The company, which already operates exchanges in Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo, and Paris, is the largest liquidity pool in Europe, accounting for around 25% of all cash equity trading activity across the region.

Euronext said the acquisition of ATHEX would support the harmonization of European capital markets and allow Greek financial participants to access a wider pool of liquidity.

Related: Euronext’s FX Trading Business Hits New Highs as Revenue Jumps 30%

Euronext also framed the deal as a vote of confidence in the Greek economy and the potential of its capital markets. A merger would give Greek issuers and investors access to a broader financial infrastructure and position the country more firmly within the European Union’s capital markets network.

Greece Seen as Strategic Growth Opportunity

If completed, the transaction would give ATHEX access to a group that currently hosts more than 1,800 listed companies with a combined market capitalization exceeding €6 trillion.

Euronext emphasized that the discussions are ongoing and that there is no certainty that an agreement or offer will result. The company stated that any potential deal would follow its existing financial discipline and strategic investment criteria. Further updates will be provided if material developments occur.

Last year, Euronext announced the expansion of its clearing operations to all financial derivatives markets and the acquisition of research benchmarking provider Substantive Research. The expansion of Euronext to derivatives markets marked the completion of migrating clearing activities from LCH SA.

This article was written by Jared Kirui at www.financemagnates.com.Institutional FXRead More

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