NYSE Euronext, Deutsche Boerse to form biggest exchange

NYSE Euronext and Germany's Deutsche Boerse confirmed on Wednesday that they are engaged in " advanced discussions" regarding a potential business combination, which may form the biggest exchange operator in the world.

NYSE Euronext said in a statement that the two companies would combine their businesses in all-stock transaction under a new legal entity incorporated in the Netherlands. If fully consummated, Deutsche Boerse shareholders would hold approximately 59 percent to 60 percent, and NYSE Euronext shareholders would hold approximately 40 percent to 41 percent, of the combined company's equity.

The combined group would have dual headquarters in New York and Frankfurt. The Chairman would be Reto Francioni, based in Frankfurt, and the CEO would be Duncan Niederauer, based in New York. The new company would have an Executive Committee drawn equally from the current leadership of both companies.

With the completion of the transaction, the two companies will merge into the world's largest exchange operator by revenues and profit.

Stocks of NYSE Euronext soared nearly 15 percent in New York market, the best performer among Standard &Poor's 500 components.

Source: Xinhua