Dow Jones Selling Its Stake in Stoxx Indices

Deutsche Boerse and SIX Swiss Exchange have announced that they are buying out Dow Jones’ (NWS) one-third stake in Stoxx for a consideration of 206.1 million euros, or $306 million.

Stoxx was set up as a joint venture between Deutsche Boerse, Dow Jones and SIX Swiss Exchange in 1998 in anticipation of the introduction of the euro and the creation of the eurozone. Stoxx is Europe's leading index provider in the ETF market and Europe's No. 1 (world No. 2) provider in the derivatives market, according to the company’s Web site. A number of U.S.-listed ETFs are tied to the company’s indexes as well.

Following the transaction’s completion, which is due to take place early next year, Deutsche Boerse will have a controlling stake in Stoxx of 50 percent plus one share and will fully consolidate it for accounting purposes.

In addition, SIX and Deutsche Boerse will set up a new entity to perform index calculations, in which SIX will own 50 percent plus one share.

According to a Stoxx press release, the transaction will allow both Deutsche Boerse and SIX to significantly expand their positions in the international index business, complementing their established DAX and SMI index families.

The sale could be a precursor to the long-rumored sale of Dow Jones Indexes. The Wall Street Journal reported in August that News Corp. (NWS) was considering selling the venerable index provider, which has annual revenues of approximately $130 million to $170 million.

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