The Tel Aviv Stock Exchange (TASE) is exploring a potential €20 million to €40 million takeover of the Cyprus Stock Exchange (CSE), Calcalist reported.

The deal would position the Israeli market operator to secure its first regulated European bridgehead, though neither TASE’s management nor its board has made a final decision to submit a bid.

The sale includes more than a trading venue. Under Cyprus’s privatisation law passed in February, the transfer to a new commercial entity includes the national central securities depository (CSD) and securities registry.

A buyer would therefore acquire settlement and record-keeping operations alongside the exchange.

An EU Foothold for TASE

TASE placed acquisitions and international partnerships at the centre of its 2027–2031 strategy, unveiled in September. Thus, Israeli exchange begins looking beyond its domestic market and CSE purchase would give it its first operating presence in the EU.

The exchange is targeting average annual revenue growth of 15% to 18% and plans to create a holding-company structure that would make it easier to add new businesses.

CSE is a small and currently unprofitable exchange, with estimated annual revenue of €4 million to €7 million, according to Calcalist. Most of that revenue comes from clearing services and trading in foreign corporate bonds rather than the domestic equity market.

For TASE, the potential value therefore lies in gaining an established EU market operator together with its clearing, settlement and registry infrastructure.

Euronext Athens Could Have an Advantage

Price will determine 70% of the tender score, while the remaining 30% will depend on the bidder’s plan for developing the Cypriot capital market.

Euronext Athens might be a potential rival bidder. The Athens and Cyprus exchanges have shared trading and clearing infrastructure since 2006, giving Euronext an established operational relationship with CSE. However, Euronext has not announced a bid, while TASE has yet to make a final decision.

The tender has not yet opened and still requires approval from the Cypriot Attorney-General’s office. The government nevertheless aims to select a buyer and sign an agreement before the end of 2026.

This article was written by Tanya Chepkova at www.financemagnates.com.

Source: Finance Magnates