French political and financial opposition to the New York Stock Exchange’s takeover of Euronext, operator of the Paris stock exchange, is crumbling as groups that once opposed the deal give it begrudging support.
Paris Europlace, the French financial lobby group, on Friday said it was withdrawing its objections to the NYSE takeover.
It argued that recent changes to the proposed governance structure of the enlarged group and assurances from European regulators had addressed most of its concerns.
The lobby group had championed French reserves about the NYSE deal in October, when a report it commissioned from industrialist Henri Lachmann recommended that Euronext should opt for a deal with Deutsche Börse, its German rival.
But Deutsche Börse has since pulled out of the battle to buy Euronext, increasing the chances that shareholders will vote in favour of the pan-European exchange’s $12bn purchase by the NYSE when they meet in Amsterdam on Tuesday.
Paris Europlace said a study it commissioned from Claude Serra, a lawyer at Weil Gotshal & Manges, had found that there would be little impact on Euronext users from the deal.
It said the study established there was little risk of US regulation being imposed on European companies listed on Euronext.
The planned formation of a Dutch holding company, the study found, would create a “safeguard measure” for Euronext.
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