Tel Aviv Stock Exchange Explores Cyprus Exchange Acquisition Amidst Competition
Translated & summarized from Bizportal by baba
The Tel Aviv Stock Exchange is considering acquiring the Cyprus Stock Exchange (CSE) for an estimated 20-40 million euros as part of its privatization. This interest is not new, with potential competition from European exchange group Euronext, which recently bought the Athens Stock Exchange. Cyprus aims to sell the CSE due to its consistent financial losses and need for professional management and investment. The CSE's privatization process will consider both the offered price and the business plan for its future development.
The story in 5 lines · by baba
- The Tel Aviv Stock Exchange is evaluating a bid for the Cyprus Stock Exchange, valued at 20-40 million euros.
- Israeli interest in the CSE dates back to at least the summer of 2023.
- European exchange group Euronext is a significant potential competitor for the CSE.
- Cyprus is privatizing the CSE due to its persistent financial losses and need for investment.
- The CSE privatization tender will weigh price at 70% and the business plan at 30%.
The Tel Aviv Stock Exchange (TASE), led by CEO Itai Ben-Zeev, is conducting an advanced review of a potential bid to acquire the Cyprus Stock Exchange (CSE) as part of its privatization process. The CSE is valued between 20 to 40 million euros, though a final decision on TASE's participation in the tender has not yet been made, pending the release of tender terms.
However, reports from Cypriot media indicate that Israeli interest in the CSE is not new, dating back to at least the summer of 2023. At that time, a delegation visited Cyprus, and publications mentioned potential interest from Switzerland's SIX Group and the Athens Stock Exchange. This suggests the process has been under consideration for over three years, though initial interest does not equate to a binding offer.
A significant competitor has emerged in Euronext, the European exchange group that recently acquired the Athens Stock Exchange. This acquisition means that if the Greek interest in the CSE persists, it is now backed by a much larger entity. Euronext's existing operational infrastructure, which includes shared trading and clearing systems with the Athens Stock Exchange since 2006, gives it familiarity with Cypriot operations and a potential advantage in integrating the CSE into its network.
Cyprus is seeking to sell the CSE due to its small size, low trading volumes, and persistent unprofitability. In February 2025, the exchange reported revenues of approximately 4.97 million euros against expenses of 6.86 million euros, resulting in a deficit. The Cypriot parliament approved privatization in February 2026, citing negative economic developments and a rigid cost structure as reasons for the losses and the need for professional management and investment.
The privatization framework prioritizes both price and business plan, with price accounting for 70% and the business plan for 30%. While TASE's acquisition would be relatively small for its scale, it offers a foothold in an EU and Eurozone market. For Euronext, acquiring the CSE could further expand its presence in the Eastern Mediterranean, leveraging existing synergies with the Athens exchange.
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