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Tuesday
Feb152011

German, New York Stock Exchanges Announce Merger

Photo Courtesy - Getty Images(NEW YORK) - The German stock exchange and the New York Stock Exchange officially announced their much-anticipated merger Tuesday, which results in the world's largest exchange operation.

In the deal, Deutsche Boerse will control 60 percent of the shares in the new company, with the NYSE becoming the minority shareholder at 40 percent.

In a joint press release, the two exchanges announced the formation of The Premier Global Exchange Group, which will have dual headquarters in New York and Frankfurt.

“This combination will create significant value for all stakeholders," Reto Francioni, chief executive officer of Deutsche Boerse, said in a joint press release. "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."

NYSE Chief Executive Officer Duncan Niederauer said the company will become a global leader in the financial arena.

"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," said Niederauer. "Our respective shareholders will also benefit from a significantly enhanced growth profile, the opportunity to achieve substantial cost synergies, unparalleled cash flow generation, and very strong credit metrics.”

Combined, the companies brought in a net revenue of $5.4 billion in 2010 and a total EBITDA of $ 2.7 billion, the largest of any exchange in the world.

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