NYSE Euronext buys 20 per cent stake in Qatar Exchange

20 June 2009

NYSE Euronext, the holding company of NYSE Group Inc in the US and Europe's Euronext N V, and operator of the world's largest stock exchange group has set a footing in the gas-rich Arabian gulf nation of Qatar by acquiring a 20-per cent stake in the Qatar Exchange for $200 million (727 million Qatar rial) as part of the deal with its parent company, Qatar Holdings, NYSE Euronext said yesterday.

The deal will give birth to the new Qatar Exchange based on NYSE Euronext technology, which will replace the existing Doha Securities Market (DSM). The remaining 80 per cent of the stake will be owned by Qatar Investment Authority (QIA) through Qatar Holdings.

The $200 million investment is the largest so far by NYSE Euronext in a foreign stock exchange. NYSE earlier planned an investment of $250 million to acquire 25 per cent stake, which has been further reduced to $200 million as the Qatari government is planning for public listing of the Qatar Exchange in the near future.

NYSE Euronext secured the deal outpacing the competition from the London Stock Exchange which was also keen to expand its business in the region.

The new Qatar Exchange which is stated to be opened on Sunday, will be headed by Andrew Went, a senior executive of NYSE Euronext. All employees of DSM will be transferred to Qatar Exchange.

The prime minister of Qatar Sheik Hamad bin Jassem Al Thani said the deal with NYSE Euronext will help the gulf nation to assume a leading role in the global capital markets.