London Stock Exchange Group and Deutsche Bourse on Wednesday announced they would combine in a "merger of equals," to be based in London.
The agreement is an all-share deal and will create a holding company for both firms, to be called UK TopCo, according to a joint news release form both firms. The companies said 54.4% of UK TopCo will be owned by Deutsche Bourse shareholders. The remainder will be owned by LSEG shareholders.
The overall value of the deal was not disclosed.
The announcement came amid a stated attempt by Intercontinental Exchange, operator of the New York Stock Exchange, to make an offer to buy the London Stock Exchange Group. Nasdaq and CME Group were also interested in making offers for LSEG.
Carsten Kengeter, CEO of Deutsche Bourse, will be CEO of the combined group. Xavier Rolet, CEO of LSEG, will become an adviser to the UK TopCo leadership for up to a year after the deal is closed.
Donald Brydon, LSEG chairman, will become chairman of the combined group.
Mr. Kengeter said in the release that the merger "is the logical evolution for our companies in a fundamentally changing industry."
The firm's did not set an expected closing date. The deal requires regulatory approval.