NYSE, Deutsche Boerse Confirm Merger

It’s official: Euronext has announced that German company Deutsche Boerse, operator of the Frankfurt Stock Exchange, has merged with the New York Stock Exchange to create the “world’s premier global exchange group.”

Boerse and NYSE Euronext confirmed on Feb. 9 that they were “engaged in advanced discussions” regarding a potential merger.

According to ABC News, Boerse shareholders will own 60 percent of the new company, which has yet to be named. The new group, to be incorporated in the Netherlands, will reportedly have dual headquarters in New York and Frankfurt and operate all exchanges under local supervision and regulatory frameworks.

Though Boerse will have 10 out of the 17 seats on the new board, NYSE head Duncan Niederauer will hold the all-important position of chief executive, said CNBC. Boerse’s CEO Reto Francioni will be chairman.

While the Boerse and NYSE boards have given the merger their blessing, it still needs a seal of approval from the shareholders and regulators, said ABC.

The merger is expected to save $411 million which will come, said the New York Times, from joining the companies’ technology systems and back-office dealings, which means fewer than 100 jobs will have to be cut in New York. Less than 1,000 jobs would be cut overall.

Though Niederauer referred to the deal as “a catalyst for the development of a global capital markets community,” CNN Money reported that U.S. and European regulators are going to keep a close eye on the proceedings.

This is the first time in the NYSE’s history, according to the Los Angeles Times, that it will be controlled by a foreign entity.