We hear that Euronext has approached Deutsche Borse for talks on a merger between the two exchange businesses.

If successful, this will be lead to a £13 billion-plus ($22.6bn) Europe-wide “super-exchange”. It came a step further today as the Frankfurt-based German Borse gave the nod to a merger with its Franco-Dutch arch-rival Euronext.

Despite receiving the go-ahead from UK regulatory authorities for an assault on the London Stock Exchange, Euronext seems to have withdrawn from the scene. Talks between the two Eurozone giants are expected to take place shortly.

The Times (London) comments: “… a combined Euronext and Deutsche Borse would dominate the European equity and derivatives markets and be capable of competing with heavyweight American exchange markets as the consolidation of the sector moves swiftly forwards.”

Deutsche Borse operates the Frankfurt stock exchange and Eurex derivatives market, while Euronext was formed out of a merger between the French, Belgian and Dutch exchange. It now includes the Spanish and Portuguese markets and owns the London-based derivatives market, Liffe.

Nasdaq’s interest in the LSE, which sparked a 30 percent jump in its share price, is expected to be followed shortly by a counter-bid from the New York Stock Exchange.

A Deutsche Borse spokesperson said: “In light of the increased consolidation dynamics in the exchange industry, Deutsche Borse reconfirms its priority to actively shape the creation of a truly European exchange organization. Deutsche Borse welcomes Euronext’s statement that it intends to work constructively with Deutsche Borse towards this goal. Deutsche Borse is looking forward to enter into concrete negotiations with Euronext management on realizing a combination of the two groups on the basis of a merger of partners with a view to create a global market leader in the industry.”

It’s beginning to shape up for a Eurozone consolidation followed by a transatlantic super merger involving the NYSE and possibly Nasdaq too. Never were the Anglo-Saxon and European business models apparently so far apart.