Brussels, 24/05/2005 (Agence Europe) - The European Commission has approved the acquisition of the US financial market data provider, Moneyline Telerate Holding, by its main rival, British Reuters Limited. The transaction is for EUR 175 million and was endorsed further to the commitment of both parties to provide a global exclusive licence for Telerate's MDP product to US Hyperfeed Technologies, a provider of financial market data technology. These platforms allow financial market data to be used on a global scale, focusing on the distribution of real-time market data from many different sources.
After review, the Commission had noted a risk for competition in this field. The same day, the US Department of Justice (DoJ) authorised unconditional acquisition considering that, without this provision, competition on financial market data platforms would have been reduced. “We are very pleased with this outcome, which follows close cooperation with the US Department of Justice and coordinated efforts to find a suitable remedy that fully resolves the Market Data Platforms competition problem”, the Competition Commissioner, Neelie Kroes, asserted. She added: “We also made effective use of the new referral system which allowed the Commission to examine this merger, which would otherwise have been reviewed under the laws of twelve different Member States”. Further to the transaction, the market for financial data in real time will remain characterised by fierce competition, the Commission says, whereas, on the financial data platforms, the meeting of assets of the two parties would entail a strengthening of their position at global level that would place them above all challenge. The license granted to Hyperfeed Technologies to resolve this problem allows the American operator to position itself as a viable and effective competitor of Reuters, the Commission concludes.