It’s like if you fused Inter and Real, total madness, as one broker to the announcement that the stock market in Frankfurt could team up with New York Stock Exchange.
The news of the possibility of spread to financial markets quickly as lightning, a laconic reaction partners that “nothing decided yet” and that “negotiations” are relatively far away, “the Reuters witness that the information was much more than just rumors.
Very soon appeared and some details of possible mega-merger on the capital market: in principle it would be a fusion “between equals”, but the German stock exchange in Frankfurt, however, was “a little more equal” than the stock market since 2007. includes stock exchanges in New York and Paris, Amsterdam, Brussels and Lisbon.
Ratio of 60:40 in favor of the German stock exchange is the result of the current market value of shares of the two stock exchanges, where the Frankfurt stock exchange worth about $ 15 billion, and the one in New York “only” 9 billion.
The head joint stock, which would be the largest in the world, should still come to New York director Duncan Niderauer, and the seat of the new stock would be beyond the Atlantic.
Director of the German Stock Exchange Reto Francona to stay in Frankfurt, but was chairman of fused Stock Exchange.
The seriousness of intent and that talks on Wednesday, when the end of trading on the Frankfurt Stock Exchange and published this story, drawn agio German stock exchange, though, and so its value increased by three percent.
An agreement could come soon as this month.
Among the exchanges, otherwise, have long lasting wave of mergers, and the German stock market is so far difficult to find partners, because few people feel comfortable with such a giant in the home.
Frankfurt hoped fusion with London, but he went his own way and planned fusion with the Toronto Stock Exchange. Frankfurt has turned his back and Euronext, and the Warsaw Stock Exchange …
But now the German stock market could still find a partner with whom could be measured in weight.
The negotiators in New York and Frankfurt to fusion could generate savings of 300 million euros, but the synergy is not the most important reason for possible mergers and the creation of such mega-exchange.
For this classic securities markets have long been under pressure to lower their costs in order to withstand the race to alternative markets and trade – over the Internet.
Another reason is certainly the challenge that the entire West is pending before the growing Far East, and Frankfurt is an additional motivation and louder in the Old World thinking about introducing new, more stringent rules against speculators.
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