Potential Merger of NYSE Euronext and Deutsche Börse
February 11, 2011 | Posted by email@example.com | Topic(s): Antitrust
, Cross-Border Deals
, European M&A
, International M&A
, Stock Exchanges
NYSE Euronext and Germany’s Deutsche Börse, two of the world’s largest stock exchange operators, announced this week that they are in “advanced discussions” regarding a possible merger which would create the largest stock exchange in the world. According to Reuters, the board of NYSE Euronext is expected to meet this weekend to discuss the planned takeover.
The deal would be structured as an all-stock transaction and would give Deutsche Börse stockholders approximately 59% to 60% ownership in the combined company. NYSE Euronext shareholders would own the remaining equity. The combined company would have dual headquarters in New York and Frankfurt and would be incorporated in the Netherlands.
The emergence of this deal comes just hours after the stock exchanges of London and Toronto also announced merger plans.
As traditional exchanges continue to face intense cost pressures from aggressive, electronic rivals, this may only be the beginning of a larger shake-up and further consolidation in the stock exchange industry.