NYSE, Deutsche Boerse in Merger Talks

Updated from 12:19 a.m. EST

NEW YORK ( TheStreet) -- Deutsche Boerse and NYSE Euronext ( NYX) confirmed Wednesday they are in merger discussions.

The companies cautioned Wednesday that no agreement has been reached.
Deutsche Boerse and NYSE Euronext are in merger discussions.

"They also noted that there cannot be any assurance that an agreement will be reached or, if an agreement is reached, that a transaction will be completed. Any transaction would be subject to the approval of the two companies' boards, regulatory and shareholder approvals, as well as other customary conditions," a joint press release said.

Deutsche Boerse and NYSE Euronext, the owner of the New York Stock Exchange, would merge in all-stock deal. If a deal is reached, Deutsche Boerse shareholders would hold about 59% to 60% of the combined company's equity, while NYSE Euronext shareholders would hold about 40% to 41%.

Deutsche Boerse owns the main stock exchange in Germany.

"The combined group ... would be the world's largest exchange operator by revenues and profit," the joint statement said.

The venture would have two headquarters, one in New York and the other in Frankfurt, Germany.

Reto Francioni would be appointed chairman while NYSE's Duncan Niederauer would be named the joint company's CEO. The rest of the executive management team would then be "drawn equally" from both companies, the companies said.

The announcement follows news this morning that the London Stock Exchange ( LSE) struck a deal to buy Canada's TMX, creating the world's fourth-largest bourse trading $4.1 trillion of stock each year.

NYSE Euronext shares rose almost 16% to $38.73.

--Written by Theresa McCabe in Boston.

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