Multi-country exchange Euronext ensnares German companies

Frankfurt .


The group’s software and events division wants to win numerous new customers in Germany.

(Photo: HAMILTON/REA/laif)

The multi-country exchange Euronext is catching customers in Germany with its software and events division. The company has set up a team in Germany for this purpose and is opening a branch in Frankfurt on Thursday – practically on the doorstep of its competitor Deutsche Börse.

“We already have around 30 customers in Germany, including DAX companies,” said the Euronext manager responsible, Pierre-Edouard Borderie, to the Handelsblatt. “Our goal is to significantly increase the number of our customers in Germany over the next few years.” There are around 2.5 million small and medium-sized companies in Germany. “So the market potential is huge.”

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Borderie heads the Euronext Corporate Services division. It offers software solutions to companies, authorities and other organizations, including in the areas of investor relations, governance and compliance. In addition, she organizes virtual events such as investor days, annual general meetings and press conferences for customers. “We offer this in the company headquarters, but also in congress centers or in our new studio in Frankfurt,” explains Borderie.

In addition, his unit prepares young companies for the requirements they have to meet when going public. Deutsche Börse and the Madrid Stock Exchange are also active in this area.

At Euronext, German companies were previously looked after from other European locations. In the future, a five-strong team in Germany will be primarily responsible for all existing and new customers. Bastian Lange, who was recruited from Deutsche Börse by Euronext, is also part of the party. Lange has worked for Germany’s largest stock exchange operator for more than 15 years, most recently as head of community management in Frankfurt.

The range of services that companies can use to communicate with investors and meet their regulatory obligations is a supplement to traditional stock exchange business. “Euronext aims to diversify its sources of income,” emphasizes Borderie. “We are part of this effort.”

Several German companies are listed on Euronext

In addition, financial experts assume that Euronext is also ensnaring some German companies in order to make an IPO on Euronext palatable for them. The group operates trading places in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal.

>> Read also: Multi-country exchange Euronext calls for more mergers in Europe

The corporate services division does not have the agenda to win companies for a listing on Euronext, said Borderie. “But of course Euronext is an international stock exchange operator, and if a German company is interested in going public, we will be happy to forward it to the responsible colleagues at Euronext.”

Companies usually go public in their home country. However, Euronext has already attracted a number of German companies in recent years, including the pharmaceutical companies Vivoryon and TME Pharma. In 2021, recycling company Pyrum and exchange shell European Healthcare made their Euronext debut.

However, the management of Deutsche Börse is more worried than Euronext about the competition from large American stock exchanges. Since the US capital markets are larger and there are more specialized analysts and investors there, German tech companies in particular are flirting with an IPO in America.

The Mainz-based biotech company Biontech, which is now known worldwide for its corona vaccine, went public in the USA in 2019. The industrial gases group Linde intends to withdraw from the German stock exchange after the merger with US competitor Praxair and in future to limit itself to its listing in New York.

More: Interview with Deutsche Börse Board Member Thomas Book: Why didn’t Biontech go public in Germany?

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