Exchange operator Euronext has pulled out of its prospective takeover of Allfunds.
The deal had been reported to be worth €5.5 billion, valuing individual shares at €8.75.
In a statement, Allfunds said: “The Allfunds board considered that the terms of the proposal were inadequate. Allfunds subsequently entered into discussions on terms with Euronext, but no agreement was reached, and discussions have been terminated.”
However, Euronext said it had withdrawn its indicative offer after conducting due diligence on the deal.
According to a Reuters report, an Allfunds spokesperson said: “Other than a discussion about the company’s publicly disclosed financials, Euronext received no other access to due diligence.”
Euronext lost 10% of its share price value over six successive sessions following the announcement of the initial bid in February, while Allfunds’ tracked upwards by 13% during the same period.
The acquisition of Allfunds would have marked a form of diversification for Euronext, which has been focused on acquiring national exchanges in recent years. It owns bourses in Rome, Amsterdam, Brussels, Dublin, Lisbon, Oslo and Paris. The deal would have given Euronext access to a distribution network for wealth managers worldwide.
Madrid-based Allfunds reached a valuation of €7.2 billion during its Amsterdam listing in 2021. Since, it has onboarded 104 new fund houses, on top of its existing 3,000 listings and 51 new distributors, as of October 2022.
In October 2022, Credit Suisse sold its 8.6% share in Allfunds for €334 million.
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