The New York Stock Exchange has agreed to buy Paris-based Euronext for approximately $10 billion, forming the first transatlantic stock exchange.
Termed a ‘merger of equals’ by the two parties, the new company will be called Nyse Euronext and will have headquarters in New York, international headquarters in Paris and Amsterdam, and its derivatives business in London.
Under the terms of the deal, Euronext shareholders will be able to exchange each of their shares for 0.98 shares of NYSE Euronext stock and EUR21.32 in cash. The companies said the combined NYSE Euronext would have a market capitalisation of about $19.2 billion (EUR15 billion), making it the biggest publicly traded market in the world.
Jean-Francois Theodore, CEO of Euronext, commented, Combining NYSE’s global brand and leading cash marketplace with Euronext’s international, cross-border, and diversified product range, technology and integration skills is the winning global platform for growth. Moreover, this partnership will allow the successful Euronext model to be extended further across the Eurozone and is the best way to create a competitive European capital market.