Nasdaq and Intercontinental Exchange are withdrawing their proposed $11 billion bid for the parent of the New York Stock Exchange after recognising they would not receive regulatory approval for the transaction.
The decision leaves the path open for NYSE Euronext to proceed with its previous $10 billion deal to combine with the German exchange operator Deutsche Boerse.
Nasdaq OMX Group and IntercontinentalExchange said that they held unsuccessful talks with the competition division of the Justice Department about their joint bid for NYSE Euronext.
The news comes a week after Nasdaq and ICE reached out directly to NYSE Euronext shareholders, issuing a letter saying that the NYSE board was rushing a vote without exploring better alternatives.
The NYSE Euronext board had twice rejected the Nasdaq and ICE bid.
