(March 27 – 09:45 ET) – Nasdaq has agreed to acquire majority ownership in Easdaq, the Belgium-based, pan-European stock exchange, as part of its European strategy.

With this agreement, Nasdaq will establish a presence in Europe, as it acquires a majority ownership position in Easdaq. The plan is subject to approval by the Easdaq shareholders, which is expected to follow later this month.

Nasdaq plans to restructure the company into a globally linked, pan-European market called Nasdaq Europe. It views this transaction as its first step in playing a major role in the further consolidation of trading in Europe. However, it says discussions with other markets and major market participants will continue.

By June, Nasdaq Europe will launch the newly-developed European Trading System, offering similar functionality as the current Nasdaq. Before the end of 2001, Nasdaq Europe intends to introduce a hybrid market model customized to European best practices.

Nasdaq will initially acquire approximately 58% of the company. After the exercise of warrants outstanding and the issuance of additional shares, Nasdaq’s ownership in the company will stand at about 51%. Knight Trading Group Inc. will remain as a strategic investor in Easdaq and eight major securities firms have indicated their intent to join Nasdaq in this transaction, with other strategic investors to follow.

Nasdaq hopes the deal will allow it to: expand and consolidate European order flow in Nasdaq-listed and other U.S. stocks; create the European initial public offering market of choice; and, expand and capture a significant proportion of European cross-border trading.

Nasdaq chairman, Frank Zarb, said, “Today’s announcement moves us closer to achieving our strategic vision of an international Nasdaq. This transaction begins to put into place the third leg of our global trading platform-Nasdaq Europe, Nasdaq U.S., and Nasdaq Japan.

Easdaq’s chairman, Stanislas Yassukovich added, “This transaction represents the culmination of many years of effort to create a pan-European stock market for growth companies that will be part of a global trading platform. The founding members will strongly recommend that shareholders approve this transaction.”