Nordic Exchanges Eye Historic Merger Amid Calls for Consolidation
The Nordic region is considering merging its stock exchanges into one unified market, a move that could deepen liquidity and attract more initial public offerings (IPOs). The initiative, dubbed 'Nordic Compass,' aims to make four countries, Sweden, Denmark, Norway, and Finland, trade like one. Christian Clausen, BlackRock's Nordic chair, is involved in the discussions alongside Wallenberg Investments and other major companies.
The group wants to address a problem that has been raised by Norwegian portfolio managers: why should these four countries with similar economies and market cultures operate separate stock exchanges? The idea of consolidation is not new; between 2003 and 2006, Nordic stock exchanges were unified under OMX, which later became Nasdaq Nordic.
The biggest hurdle to true unification is the ownership divide. Nasdaq runs exchanges in Stockholm, Copenhagen, Helsinki, and Reykjavik, but Oslo Børs, Norway's exchange, was acquired by Euronext in 2019. Any merger would need to bridge this ownership gap, which could be difficult given Euronext's significant investment.