New York and German exchanges sign off on deal

By Associated Press
Posted Feb. 15 at 8:42 a.m.

The parent company of the New York Stock Exchange says it has agreed to combine with the operator of the Frankfurt stock exchange, Deutsche Boerse.

The deal announced Tuesday will create the world’s largest financial exchange owner. Deutsche Boerse shareholders will own 60 percent of the new company. Shareholders of NYSE Euronext Inc. will own the rest.

NYSE Euronext’s revenues have fallen recently because of competition from cheaper computerized stock exchanges in the U.S. and Europe. Many other global stock exchanges have also combined to save costs.

The deal will give NYSE Euronext a larger footprint in the more lucrative business of trading in futures and options contracts.

The boards of both exchange owners signed off on the deal, but it must still be approved by shareholders and regulators.

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