NYSE Euronext to acquire Powernext Carbon

NYSE Euronext has reached an agreement with French energy exchange Powernext to acquire Powernext Carbon, the company's emission permit division, as part of its plan to set up an international carbon market.

Powernext will provide the basis for an organized international market in CO2 emission permits and credits to be developed in association with Caisse des Dépôts et Consignations (CDC).

This transaction, which remains subject to the approval of the Extraordinary General Meeting of Powernext shareholders on December 21, would be coupled with NYSE Euronext's complete withdrawal from Powernext through the sale of its 34% stake in the company.

From early 2008 a joint venture between NYSE Euronext and Caisse des Dépôts et Consignations will offer the full range of international market services for carbon emission permits, from trading to settlement and delivery.

The move comes as exchange operators look to increase their carbon trading capabilities.

The CME Group, the world's largest derivatives market, has said it is interested in developing carbon trading products, while Nymex Holdings, owner of the New York Mercantile Exchange (Nymex), recently revealed it will begin offering contracts for carbon trading in early 2008.

Nymex has also long been rumoured to be a potential takeover target for NYSE Euronext.