Mergers, Acquisitions and Takeovers Case Study

NYSE–Euronext Merger: A Cross-border Merger of Equals

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Abstract:

In June 2006, NYSE decided to merge with Euronext NV, a cross-border stock exchange organisation in Europe and create the largest exchange in the world with a market capitalisation of $21 billion and an average daily turnover of $100 billion. The transatlantic merger was set to create the world’s most liquid and global financial marketplace and intended to offer unmatched benefits for investors and issuers across the globe. The strategic partnership also aimed to bring together two industry leaders on a common platform and establish market leadership position in diverse businesses like cash equities, derivatives and futures, listings, bond and market data.

The case, while providing a broad overview of the two stock exchange companies, offers scope to discuss the synergies of the merger and the probable pay offs.

Pedagogical Objectives:

• To analyse the rationale behind the merger of two leading stock exchanges
• To discuss the expected synergies of the merger
• To debate whether the deal would be mutually beneficial for both the parties.

Keywords : Mergers,Acquisitions,Alliances Case Study;NYSE (New York Stock Exchange); Euronext; Cross-border merger; Regulation national market system; The Arcaedge; John Thain; Revenue synergies; Sarbanes-Oxley Act; Electronic communication network; Stock exchange; Horizontal market model; Derivatives trading; Federal cash market system; NASDAQ (National Association of Securities Dealers Automated Quotation)

Contents : 
Expected Synergies From The Merger
The Organisational Structure Of Nyse
Composition Of The Revenues Of Nyse In First Quarter 2006
Pre-Tax Margin Of Nyse
Brief History Of Euronext
Acquisitions And Mergers Of Euronext
Horizontal Market Model Of Euronext
Business Portfolio Of Euronext