Wednesday, February 16, 2011

NYStock Exchange parent to merge with Frankfurt, Germany, exchange

The parent company of the New York Stock Exchange announced Tuesday that it plans to merge with the owners of the stock exchange in Frankfurt, Germany, a deal that would create the world's largest marketplace for stocks and derivatives if it wins approval on both sides of the Atlantic.

Under the all-stock deal, shareholders of Germany's Deutsche Boerse would own 60 percent of the new company while NYSE Euronext shareholders would own 40 percent. That values NYSE Euronext at about $10 billion, analysts said. The new entity, which has yet to be named, would have headquarters in both Frankfurt and New York.

While both firms said in a joint statement that they expect to close the deal by the end of the year, political and regulatory obstacles could derail the timing, experts who are tracking the deal said.

Already, Sen. Charles E. Schumer (D-N.Y.) has raised concerns about whether New York's leadership role in the world of finance would be damaged if the NYSE name is not featured prominently in the new combined entity.  (Read more)

Texe Marrs explains the importance of this move

(YouTube link)