CME - Euronext: A Moated Business At A Reasonable Price

• Euronext recently completed the acquisition of Borsa Italiana to create the leading pan-European stock exchange.
• Euronext's current valuation remains reasonable, even without accounting for the potential synergies with Borsa Italiana.
• I expect Euronext to provide above-market returns to shareholders in coming years, as the company continues to grow and improve its efficiency.
• Despite the debt load from the Borsa Italiana acquisition, Euronext intends to maintain its dividend policy, whereby 50% of adjusted net income is distributed.

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