Euronext has successfully completed the acquisition of 75% of the share capital of Global Rate Set Systems (GRSS). This move marks a significant expansion for Euronext, bolstering its presence in the realm of Interbank Offered Rate (IBOR) indices and solidifying its position as a leading player in the calculation and administration of critical interest rate benchmarks in Europe.
GRSS plays a crucial role in the production of three of Europe’s most vital interest rate benchmarks EURIBOR, STIBOR® (Sweden), and NIBOR® (Norway). Additionally, GRSS owns and operates two regulated benchmark administrators responsible for producing CIBOR® (Denmark) and PRIBOR (Czech Republic), along with overseeing the production of TAB, TADO, and ICP indices in Chile. By acquiring a majority stake in GRSS, Euronext gains a foothold in these crucial markets, further diversifying its portfolio and expanding its global reach.
Euronext GRSS Acquisition: A Strategic Move in European Interest Rate Benchmarks
The partnership between Euronext and GRSS is aimed at strengthening GRSS’s position as the preferred provider in the contributed data and indices sector. Leveraging Euronext’s global leadership and reputation, the collaboration seeks to enhance GRSS’s capabilities and market presence, ultimately driving growth and innovation in the benchmark administration space.
Importantly, this acquisition contributes to the growth of Euronext’s fixed and subscription-based revenue streams, aligning with the company’s strategic objectives. Despite the significant investment, the deal does not have a substantial impact on Euronext’s leverage ratio or debt rating, reflecting a carefully considered approach to expansion and consolidation within the market infrastructure landscape.
Overall, Euronext’s acquisition of GRSS marks a significant milestone in its journey towards becoming a powerhouse in the calculation and administration of benchmark indices, positioning the group as a key player in the global financial market ecosystem. Euronext’s acquisition of GRSS enhances its role in benchmark indices, expanding market presence strategically.
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