Image Source: Flickr

Image Source: Flickr

US stock exchanges Nasdaq and ICE are dropping their $11.3billion bid for rival NYSE Euronext. The two exchanges concluded the proposed occupation would not be approved by US regulators. NYSE Euronext had already rejected the unwanted bid for the same reasons previous month. It said it would concentrate instead on plans to merge with German exchange Deutsche Boerse in a deal worth $10.2billion.

Nasdaq and ICE, an Atlanta-based futures specialist, said they had spoken with the anti-trust division of the Department of Justice. Under the Nasdaq-ICE bid, ICE would have taken over NYSE’s unoriginal business, while Nasdaq would have taken the stock exchanges and options businesses,combining two of the largest US stock exchanges in Stock exchanges history.

There is also some political opposition from those against the idea of a foreign businesses taking over a Wall Street brand. The extractions of the offer take away a major hurdle to NYSE Euronext’s plans to sell itself to Deutsche Boerse AG for $9.9 billion.

The deal with Deutsche Boerse must still win regulatory and shareholder approval in Europe and the US, but investors said the odds of the merger going through now had improved significantly. The withdrawal of the Nasdaq-ICE bid leaves Nasdaq searching for its next move. It could look at deals with other exchanges such as London Stock Exchange Group.