As per agreement, each share of Deutsche Boerse stock will be exchanged for one share of the new company stock and each share of NYSE Euronext stock will be exchanged for 0.4700 shares of the new company stock.
The new group will be incorporated in the Netherlands and will have dual headquartered in New York and Frankfurt.
Deutsche Boerse will hold 60% stake in the new entity, and remaining 40% will be held by NYSE.
It was also agreed that each of the group’s national exchanges, including those in Amsterdam, Brussels and Lisbon, will keep its name in its local market and all exchanges will continue to operate under local regulatory frameworks and supervision.
The combined group will have 2010 combined net revenues of $5.4bn, and 2010 EBITDA of $2.7bn.
Based on 2010 net revenues, the combined group will earn approximately 37% of total revenues in derivatives trading & clearing, 29% in cash listings, trading & clearing, 20% in settlement & custody, and 14% in market data, index & technology services.
Deutsche Boerse CEO Reto Francioni said this combination will create significant value for all stakeholders.
"This combination positions the group for a unique growth opportunity as clients seek more transparency, greater confidence in pricing and premier quality execution. In addition, we expect that the combined group will be a highly attractive partner for capital markets in Asia-Pacific and other parts of the world," Francioni added.
Couple of days back, it was rumored that Chicago-based futures exchange CME Group may make a last minute hostile bid for NYSE Euronext, when it was already in advance stage of merger talks with Deutsch Borse.
