Norway all but hands victory to Euronext in battle with Nasdaq over Oslo Bors

Euronext has won clearance from the Norwegian government to buy stock exchange Oslo Bors, handing it almost certain victory over rival bidders Nasdaq.

The pan-European exchange said it now expected to complete the transaction by the end of next month.

Read more: Euronext gives Oslo Bors shareholders more time to back its offer

The US giant, which has support from 37 per cent of Oslo Bors shareholders, had hoped the Norwegian finance ministry would rule that a two thirds majority of shares was needed to secure a deal.

The ministry confirmed there were no restrictions, handing the advantage to Euronext, which has support from 53.2 per cent of Oslo Bors shares.

The pair have been locked in an intense battle over the Norwegian stock exchange since the end of last year.

Both offers of 158 Norwegian kroner per share, value the business at roughly 6.8bn Norwegian kroner (£600m).

Nasdaq said the Norwegian finance ministry’s ruling was “disappointing” and it would assess its options.

Nasdaq Nordic president Lauri Rosendahl said: “There are no exchanges in Europe where a majority shareholder owns more than 50 but less than two-thirds of the shares.

“We were hopeful the Norwegian authorities would make a decision consistent with this widespread European practice.”

The company said from conversations with investment firms, industry bodies and the public, it felt that a large majority preferred Nasdaq to be the new owner of Oslo Bors.

"This takeover is an unintended, yet unavoidable consequence of the competition landscape post Mifid I, which have been accentuated by Mifid II," Lars Wilberg, from global trading systems provider Itiviti said.

"The pressure on transaction costs have reached a level where you need to scale your business or simply perish."

Read more: Nasdaq increases Oslo Bors stake as battle with Euronext comes to a head

The decision was welcomed by Euronext, however, who hoped to complete the deal next month.

Chief executive Stephane Boujnah said: “Euronext welcomes the ministry’s clearance to acquire up to 100 per cent of Oslo Bors’ capital and look forward to completing the next steps to close the transaction by the end of June 2019.

“As part of the Euronext family, Oslo Bors will continue to be a strong and leading Nordic exchange and CSD, and a hub for Euronext’s ambitions in the region.”