Tuesday, February 15, 2011

NYSE And Deutsche Merging Exchanges

I personally don't like this merger. In my opinion, with this merger, New York may not be the capital of the world anymore for stocks and economic outlooks if this gets approved. You think of NYSE, you think America, Capitalism. Who knows now. It still needs regulatory approval from the US and Europe. Just another sign that America is being bought out by a foreign entity since Deutsche will be majority owner.

CNN Money: NYSE Euronext (NYX, Fortune 500), the parent company of the New York Stock Exchange, and Germany's Deutsche Boerse agreed to merge in a $10 billion deal that will create the world's largest exchange for stocks and derivatives.

The deal, announced before the U.S. markets opened Tuesday, ends several days of negotiations between the two exchanges.

Under the terms of the deal, Deutsche Boerse will swap 0.47 of its shares for one share of NYSE Euronext. That will make the combined company 60% owned by Deutsche Boerse shareholders, with existing NYSE Euronext shareholders owning the remaining 40%.

The merged company will have combined revenue of $5.4 billion, according to a joint statement, making it the largest exchange by revenue.

Read the full thing here

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