Deutsche Borse and NYSE Euronext in merger talks

9th February 2011

The Frankfurt and New York stock exchanges are raining on London and Toronto's parade.  In a perfect riposte to its rivals, Deutsche Bourse and NYSE Euronext, which owns the New York exchange, are in advanced talks to merge creating the world's largest stock exchange group by revenue and profits.

With what seemed almost like indecent haste, the news of the proposed merger broke only a day after the London Stock Exchange confirmed talks to buy TMX, owner of, among other things, the Toronto exchange.

The all share deal would see Deutsche Bourse holding about 60 per cent of the shares with a chairman in Frankfurt and a chief executive in New York.

Here FT reports the story. 

Trading in the shares of both exchanges was suspended. FT Alphaville relates how the story enfolded here.

E-financial news reported the full statement from both Exchanges. 

But this may not be the last merger. Other exchanges may now come under pressure to merge, say analysts. Here on Reuters.

Thomas Caldwell, chief executive of Caldwell Securities says: "These mergers don't take place on a one-off basis; they come in clusters."

SEE ALSO: London Stock Exchange is in talks to buy Canadian exchange TMX for $3.2bn

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