Deutsche Boerse Buys NYSE to Create Biggest Exchange Owner

Deutsche Boerse AG, operator of the Eurex futures platform and Frankfurt Stock Exchange, agreed to buy New York Stock Exchange parent NYSE Euronext in a $9.53 billion all-stock deal that creates the world’s largest owner of equities and derivatives markets.

Deutsche Boerse will swap one share of its own stock for one share in the new company, while every NYSE Euronext share will be converted into 0.47 share, according to a statement today. Deutsche Boerse will control 60 percent of the new corporation. Reto Francioni, the chief executive officer of Frankfurt-based Deutsche Boerse, will serve as chairman. Duncan Niederauer, CEO of New York-based NYSE Euronext, will keep that title at the combined organization.

While the merged entity will list corporations with about $15 trillion in value, more than any other exchange, what may prove more lucrative is ownership of growing venues for trading futures and options, said Rich Repetto, an analyst at Sandler O’Neill & Partners LP. The union follows Singapore Exchange Ltd.’s October bid for ASX Ltd., which runs the Australian stock market, and London Stock Exchange Group Plc’s agreement last week to buy Canada’s TMX Group Inc.