Israel's TASE Eyes Cyprus Stock Exchange Acquisition for EU Access
Translated & summarized from Channel 9 by baba
The Tel Aviv Stock Exchange (TASE) is considering acquiring the Cyprus Stock Exchange for an estimated 20-40 million euros to gain access to the European Union's financial infrastructure. Cyprus plans to privatize its exchange by 2026 to enhance its market competitiveness. TASE sees this as a strategic move to expand internationally, leveraging its recent domestic growth. Potential competitors include Euronext and the National Stock Exchange of India, with the final decision based on a tender process.
The story in 6 lines · by baba
- The Tel Aviv Stock Exchange is considering buying the Cyprus Stock Exchange for 20-40 million euros.
- The acquisition aims to provide TASE with an EU financial infrastructure and regulated market license.
- Cyprus plans to privatize its stock exchange as part of its 2026 program.
- TASE has seen significant domestic growth, increasing its strategic interest in international expansion.
- Potential competitors include Euronext and India's National Stock Exchange.
- The deal's success hinges on increasing liquidity, a challenge due to the Cyprus Stock Exchange's low trading volumes.
The Tel Aviv Stock Exchange (TASE) is reportedly considering the acquisition of the Cyprus Stock Exchange, seeking to gain a foothold within the European Union's financial infrastructure. The move, while seemingly disproportionate given the Cyprus Stock Exchange's smaller scale, is driven by the strategic advantage of acquiring an existing EU trading platform, clearing system, and regulated market license. The preliminary valuation for the Cyprus Stock Exchange is between 20 to 40 million euros, a fraction of TASE's estimated 3.5 billion euro market value.
Cyprus is looking to privatize its stock exchange as part of its 2026 program, aiming to boost international competitiveness and improve access to financing for small and medium-sized enterprises. The Cypriot government seeks a strategic owner to transform the national exchange into a more significant regional financial hub, citing weak performance, high expenses, and ongoing losses as reasons for the privatization.
For TASE, the acquisition offers a shortcut to establishing an EU presence, bypassing the lengthy and complex process of building such infrastructure from scratch. This aligns with TASE's new strategy for 2027-2031, which includes transforming into a public holding company and exploring acquisitions. TASE has experienced significant growth domestically, with daily trading volume increasing from approximately 284 million shekels in 2019 to 5.7 billion shekels in the first half of 2026.
Potential competitors for the Cyprus Stock Exchange include Euronext, Europe's largest exchange group, and India's National Stock Exchange. The Greek stock market also has existing ties with the Cyprus Stock Exchange through a shared trading and clearing platform. TASE's experience in modernizing its own market and attracting private investors could be a key asset in its bid.
A significant risk is the acquisition of infrastructure without guaranteeing liquidity, as trading volume on the Cyprus Stock Exchange is low, with a few large companies dominating turnover. The potential acquisition also occurs as foreign investors have reduced their net purchases of Israeli stocks by approximately 70% in the first nine months of 2026 compared to the previous year.
Cyprus offers a unique combination of low cost, EU membership, existing infrastructure, and proximity to Israel, making it a more realistic first international acquisition target than larger European exchanges. The privatization process in Cyprus involves an open tender where price accounts for 70% and the business plan for 30% of the evaluation.
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