Euronext initiates bid for the Greek stock market: A breakdown of the implications
In a significant move for the Greek economy, Euronext, Europe's largest liquidity pool, has acquired the Athens Stock Exchange (ATHEX). This integration offers Greek businesses and the Greek economy numerous benefits, aiming to modernize and internationalize the country's capital markets.
The acquisition connects ATHEX to Europe’s largest liquidity pool, enhancing market liquidity and visibility. Greek stocks will now attract more international investors, raising their profile and competitiveness [1][2].
For Greek businesses, this means improved access to capital. With a larger, more diverse investor community, firms can tap into new financing opportunities, facilitating growth amid increasing global competition [2][3].
The deal is also a testament to international confidence in Greece’s economy post-eurozone debt crisis. It signals improved fiscal status and banking system, and supports the operational sustainability of local capital markets by consolidating them within a larger, stable European framework [1][2].
Integration into Euronext's platform fosters harmonization with European capital market standards and technologies, enhancing market efficiency and transparency [4]. This technological modernization will support the Greek stock exchange's position within the eurozone and the European capital markets ecosystem.
The acquisition is viewed by Greek authorities as a major foreign investment and a step towards positioning Greece more prominently on the European and international economic map. It could stimulate further economic development and investment inflows [2][3].
Participation in Euronext's network could act as a "seal of credibility" for listed Greek companies, making them more attractive to foreign investors [6]. The deal will exchange 20 Athens Exchange ordinary shares for one new Euronext share [7].
However, the Greek economy still faces challenges. The completion of the Resilience and Recovery Fund, the looming recession threatening the European economy, and the need to change the country's production model, with less reliance on services such as tourism, are key concerns [8].
The Greek Minister of National Economy and Finance, Kyriakos Pierrakakis, described the acquisition as one of the largest foreign investments in recent years [9]. He also stated that the acquisition is a decisive step forward for the Greek economy [10].
Euronext also brings know-how and digital tools to Greece through this acquisition. The all-share deal between Euronext and the Athens Stock Exchange is worth €412.8 million [7].
For Greek businesses, this acquisition opens a new gateway to financing. They now have access to a wider investment base and can develop beyond the Greek market, which is small and showing signs of fatigue in terms of domestic consumption [5].
In summary, Euronext's acquisition is expected to modernize and internationalize Greece's capital markets, benefiting Greek businesses through better financing opportunities and contributing positively to the country's economic growth and stability within the EU framework.
The acquisition of the Athens Stock Exchange by Euronext implies that Greek businesses can access a wider investment base, leading to improved access to capital [2][3]. With the integration, Greek stocks will attract more international investors, increasing their profile and competitiveness in the global business world [1].
