Deutsche Brse and NYSE Euronext have agreed to merge, following their confirmation last week that they were engaged in advanced discussions regarding a potential merger.
Deutsche Brse shareholders will own 60% of the new group, which will become the largest exchange group in the world, while NYSE Euronext shareholders will own the rest, according to a statement by the groups.
The deal awaits approval by regulators and shareholders.
According to an earlier statement, the combined group will have dual headquarters in New York and Frankfurt. The chairman will be Reto Francioni, based in Frankfurt, and the CEO will be Duncan Niederauer, based in New York. The new company would have an executive committee drawn equally from the current leadership of both companies.
NYSE Euronext and Deutsche Brse AG expect to be able to realize approximately 300 million in cost synergies, principally from economies of scale in information technology, clearing operations, market operations and corporate center functions. In addition, Deutsche Brse AG and NYSE Euronext expect to generate substantial incremental revenues from clearing services, product innovation and cross-selling opportunities between the global cash and derivatives businesses.