NYSE Group Inc., which runs the New York Stock Exchange, and Euronext NV, operator of stock exchanges in Paris, Amsterdam, Brussels and Lisbon, on Thursday agreed to merge in a $10 billion deal, according to a joint news release. The deal would create a $20 billion company called NYSE Euronext that would be the first trans-Atlantic stock market. John A. Thain, CEO of NYSE Group, will be CEO of NYSE Euronext. Jean-Francois Theodore, Euronext's CEO, will be deputy CEO and head of international operations of the combined company.
Officials of both firms expect annual cost savings to reach $375 million before taxes, with roughly $250 million of that resulting from combining the two companies' technology systems and platforms, according to the release.
"This is an important development in the history of the NYSE, Euronext and the global capital markets," Mr. Thain said in the release. "A partnership with Euronext fulfills our shared vision of building a truly global marketplace with great breadth of product and geographic reach that will benefit all investors, issuers, and our shareholders and stakeholders."
The deal requires approvals from securities regulators as well as shareholders of both companies.