18 December 2017
visit www.ebaday.com

Nyse Euronext and Deutsche Börse confirm merger talks

09 February 2011  |  10156 views  |  0 globe

Nyse Euronext and Deutsche Börse have confirmed they are "engaged in advanced discussions regarding a potential business combination".

Earlier, shares in both exchange operators were suspended amid growing press speculation, originating with Germany's Der Aktionärsbrief, about a possible tie-up.

No deal has been reached, says a statement and any transaction would be subject to the approval of the two companies' boards, regulatory and shareholder approvals.

However, details have been revealed on the proposed arrangement, which would see them combine in all-stock transaction under a new legal entity incorporated in the Netherlands. Deutsche Börse shareholders would hold approximately 59% to 60%, and Nyse Euronext shareholders 40% to 41%, of the combined equity.

The group would have dual headquarters in New York and Frankfurt. The chairman would be Deutsche Börse's Reto Francioni, based in Frankfurt, with Nyse Euronext's Duncan Niederauer taking on the role of CEO, based in New York.

The pair claim they could realise around EUR300 million in cost synergies, principally from economies of scale in information technology, clearing operations, market operations and corporate centre functions.

In addition, they expect to generate "substantial incremental revenues" from clearing services, product innovation and cross-selling opportunities between the global cash and derivatives businesses.

A combined group would be "a true pacesetter across the spectrum of capital markets services, the combined group will offer clients global scale, product innovation, operational and capital efficiencies, and an enhanced range of technology and market information solutions".

Earlier, the London Stock Exchange and Canada's TMX Group revealed plans for their own mega-merger.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

LSE and TMX agree merger; highlight technology potential

LSE and TMX agree merger; highlight technology potential

09 February 2011  |  9218 views  |  0 comments
Deutsche Börse to buy 75% stake in Tradegate Exchange

Deutsche Börse to buy 75% stake in Tradegate Exchange

30 November 2009  |  6674 views  |  0 comments
Kuwait Stock Exchange selects Nasdaq OMX for new platform - report

Kuwait Stock Exchange selects Nasdaq OMX for new platform - report

22 June 2009  |  7528 views  |  0 comments
Deutsche Börse plans pan-European market

Deutsche Börse plans pan-European market

16 April 2009  |  7988 views  |  0 comments
Nyse Euronext buys American Stock Exchange

Nyse Euronext buys American Stock Exchange

18 January 2008  |  6303 views  |  0 comments
LSE launches Nasdaq bid defence; Euronext shareholders back Nyse takeover

LSE launches Nasdaq bid defence; Euronext shareholders back Nyse takeover

19 December 2006  |  8616 views  |  0 comments
Deutsche Börse abandons Euronext bid

Deutsche Börse abandons Euronext bid

15 November 2006  |  6268 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comvisit www.atos.netvisit www.response.ncr.com

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
11161 views comments | 3 tweets | 2 linkedin
Banks tap Ethereum smart contracts for MiFID II complianceBanks tap Ethereum smart contracts for MiF...
9825 views comments | 20 tweets | 21 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
7704 views comments | 19 tweets | 22 linkedin
Nordea takes Open APIs into live productionNordea takes Open APIs into live productio...
7306 views comments | 6 tweets | 26 linkedin
Digital banking startup Loot secures £2.2 million seed roundDigital banking startup Loot secures £...
7252 views comments | 5 tweets | 11 linkedin

Featured job

Competitive
Germany, Austria or Switzerland

Find your next job