Deutsche Boerse today ended its pursuit of a merger with Euronext, clearing an obstacle in the way of the NYSE Group's plan to create the first trans-Atlantic stock exchange.
"This decision was based on the assessment that a transaction supported by both sides will not be achievable and - in the light of recent share price developments - a transaction would no longer create value for Deutsche Boerse shareholders," a Deutsche Boerse statement said.
NYSE, parent of the New York Stock Exchange, and Euronext agreed June 1 to merge, creating a combined company called NYSE Euronext. The deal was valued at $17 billion, consisting mostly of NYSE stock and including $3.06 billion in cash, according a September filing with the SEC. NYSE and Euronext shareholders could vote on the deal in December, although neither company has set a date.
"We are convinced that, in our industry, mergers can only be successful with the support of both management teams and the industry," Reto Francioni, Deutsche Boerse CEO, said in the release. "We have invested time and commitment, but it is part of our responsibility to recognize when further effort doesn't make sense."