The Tel Aviv Stock Exchange is weighing a €20 million to €40 million bid for the Cyprus Stock Exchange, Calcalist reported, in a transaction that would hand TASE its first EU-licensed market operator together with the country's central securities depository.

CSE generated an estimated €4 million to €7 million in annual revenue, Calcalist said. The venue is currently unprofitable, with most of its top line drawn from clearing services and trading in foreign corporate bonds rather than domestic Cypriot equities.

What does the deal actually include?

Cyprus's privatisation law, passed in February, transfers the trading venue, the national CSD and the securities registry together to a single commercial buyer. A winning bidder therefore acquires settlement and record-keeping infrastructure alongside the matching engine, rather than a stand-alone exchange.

TASE placed acquisitions and international partnerships at the centre of its 2027–2031 strategy, unveiled in September. Management targeted 15% to 18% average annual revenue growth and intends to set up a holding-company structure designed to absorb new businesses.

Why does an EU foothold matter for execution?

Cyprus sits inside the EU regulatory perimeter. A licensed Cypriot operator gives TASE direct access to European trading, clearing and post-trade functions — capabilities an Israeli licensee cannot replicate from Tel Aviv.

For buy-side and sell-side desks, the open question is whether TASE will route dual-listed products, expand depositary services, or eventually channel cross-border flow through Nicosia. The source offers no evidence of those plans.

Who is competing for the asset?

TASE's management and board have yet to decide whether to submit a bid. Euronext Athens is positioning as a likely rival. The Athens and Cyprus exchanges have shared trading and clearing infrastructure since 2006, giving Euronext an operational relationship it could lean on in the tender.

Neither side has filed. Calcalist noted that price will determine 70% of the tender score and the bidder's plan for developing the Cypriot capital market will determine the remaining 30%.

What still has to happen?

The tender has not yet opened. Cyprus's Attorney-General must approve the process before it launches. The government wants to select a buyer and sign a transfer agreement before the end of 2026.

If TASE proceeds, it would join a small set of non-European operators acquiring regulated market infrastructure inside the EU. The source does not address any ESMA review of the consolidation, although such a transfer typically triggers scrutiny under the European Market Infrastructure Regulation.

What does the price tag reflect?

The €20 million to €40 million range reflects the asset's current earnings profile and the strategic premium TASE places on landing an EU venue. Calcalist reported the figure. CSE's clearing-led revenue base provides limited operating leverage, while the CSD and registry deliver sunk-cost infrastructure that the Israeli operator can scale against its own post-trade plans.

The next concrete marker for desks tracking the process will be the Cypriot government's decision to open the tender, which remains conditional on the Attorney-General's clearance.