Nasdaq, Dubai join forces for OMX
The Dubai stock market has teamed up with Nasdaq to benefit from Nasdaq's takeover of Swedish exchange OMX. Stephen Beard reports the relationship is mutually beneficial.
Nasdaq Chief Executive Robert Greifeld at a news conference in Sweden about the bid for OMX (Anders Wiklund/AFP/Getty Images)
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Doug Krizner: You know, the world's stock markets have been consolidating at a rapid pace. Now, Nasdaq and the Dubai stock market have a deal spanning the U.S., Europe and the Middle East. At the center is Nasdaq's takeover of the Nordic exchange, OMX. Stephen Beard reports from London.
Stephen Beard: The deal prevents a takeover battle from getting out of hand.
Nasdaq wasn't the only one that wanted OMX. The Dubai stock exchange was bidding, too. Now, the two rivals have joined forces. Nasdaq will get OMX, Dubai will get a 20 percent stake in Nasdaq.
It's a good deal for the American company, says David Buik of BGC Partners:
Davud Buik: The Nasdaq not only gets control of OMX in Scandinavia and Eastern Europe, which it really wants, but it also gets a foot in the Dubai market, which is growing. The Middle East market is not to be underestimated -- it's growing every single day.
Buik says the government-owned Dubai exchange will not only score a slice of Nasdaq. Under the deal, it will also be buying the bulk of Nasdaq's 31 percent stake in the London Stock Exchange.
In London, this is Stephen Beard for Marketplace.
