NYSE Euronext and Germany's Deutsche Boerse announced on Tuesday that they had reached a final agreement on business combination to form the biggest exchange operator in the world.
According to their joint statement released on Tuesday morning, the transaction is structured as a combination of Deutsche Boerse and NYSE Euronext under a newly created Dutch holding company, which is expected to be listed in Frankfurt, New York and Paris. Each share of Deutsche Boerse stock will be exchanged for 1 share of the new company stock and each share of NYSE Euronext stock will be exchanged for 0.4700 shares.
When fully consummated, Deutsche Boerse shareholders would hold 60 percent, and NYSE Euronext shareholders would hold 40 percent of the combined company's equity on a fully diluted basis.
The combined group, based both in New York and Frankfurt, will have 2010 combined net revenues of 5.4 billion U.D. dollars, and 2010 profit of 2.7 billion dollars, thus becoming the world's largest exchange group by revenues and profit.
Duncan Niederauer, Chief Executive Officer of NYSE Euronext, said: "This transaction is a catalyst for the development of a global capital markets community, delivering the best, most transparent, and innovative services for clients and issuers, wherever they are."
"The increasing globalization and interconnectedness of capital markets, and the rapidly growing presence of alternative trading venues that operate with less transparency and far fewer regulatory requirements, will position the new company as a true global player well placed to drive the long-term strength and competitiveness of transparent and regulated markets," he added.
Reto Francioni, Chief Executive Officer of Deutsche Boerse, said in the statement, "This transaction brings together two of the most respected and successful exchange operators in the world to lead the way in global capital markets and set the standard for growth, quality and market reach."
The transaction is expected to close at the end of 2011, pending shareholder and regulatory approval both in the United States and Europe.
