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Deutsche Börse seals merger with NYSE

The Local · 15 Feb 2011, 17:58

Published: 15 Feb 2011 17:19 GMT+01:00
Updated: 15 Feb 2011 17:58 GMT+01:00

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The German company, which controls the Frankfurt stock exchange, will be in the driver’s seat despite the importance of the much larger equity market in New York.

“This transaction brings together two of the most respected and successful exchange operators in the world,” said Deutsche Börse boss Reto Francioni in a statement.

The supervisory boards in Frankfurt and New York backed the merger earlier in the day with the aim of building a dominant global player capable of tapping booming Asian markets.

“We expect that the combined group will be a highly attractive partner for capital markets in Asia-Pacific and other parts of the world,” said Francioni.

Shareholders of Deutsche Börse will hold 60 percent of the merged company owing to its larger market capitalization. The Germans will also control 10 of the 17 positions on the newly formed board. The deal still needs regulatory approval.

Francioni will become chairman while the NYSE Euronext’s Duncan Niederauer will take over as the new group’s CEO.

“Reto and I are committed to bringing together the best of both organizations to create the premier global exchange group and a leader in the rapidly evolving global financial arena,” said Niederauer.

The company had combined net revenues of €4.1 billion ($5.4 billion) in 2010 and will have dual headquarters near Frankfurt and New York City.

Story continues below…

A sticking point to the deal had been the firm’s new name – with some on the American side apparently concerned about avoiding what could look like a German takeover of Wall Street. Though each regional stock market will continue to operate under its own name, the umbrella company has been dubbed The Premier Global Exchange Group.

Deutsche Börse's shares dipped 2.41 percent to €59.85 in late Frankfurt trade following the announcement.

The Local/DPA/mry

The Local (news@thelocal.de)

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Your comments about this article

16:05 February 18, 2011 by blue78
Shareholders of Deutsche Börse will hold 60 percent of the merged company owing to its larger market capitalization. The Germans will also control 10 of the 17 positions on the newly formed board. The deal still needs regulatory approval.

In other words As an American that is not a sheep and actually uses my brain... how are we not getting screwed out of this deal?... 60% is owned by the Germans... only 40% by Americans... 10 of the 17 positions owned by Germans...Americans 7 positions... AND ITS OUR EXCHANGE! and dont give me some dribble about it being just a trading platform.. its an American Icon dammit, like coke, and Mcdonalds!

I know no one that has any influence in real change, ever reads these comments.. but honestly Donald Trump was right we are being taken advange of at every opportunity... whats next Statue of Liberty? or how about the Liberty Bell?... sick :(
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