Deutsche Börse and NYSE Euronext today reiterated the benefits of the planned business combination for all capital market participants. In a joint presentation at the german “Investor Day” both companies highlighted the compelling value of the strategic combination.
“The business combination between Deutsche Börse and NYSE Euronext will bring immediate and concrete financial benefits and attractive growth prospects for shareholders of both companies”, said Reto Francioni, CEO of Deutsche Börse AG to institutional investors and financial analysts in Eschborn. “The merger fits perfectly into our strategy as it utilizes our derivatives, risk management and post trade expertise and creates additional growth opportunities.”
Duncan Niederauer, CEO of NYSE Euronext, added: “The new exchange organization will be able to offer its customers global reach, innovative products, operational efficiency, improved capital efficiency, and an expanded range of technology and market information solutions. The superior cash flow generation and a strong balance sheet allow us to maintain our shareholder-friendly distribution policy, while also having the necessary resources to invest in future growth.”
The combination of Deutsche Börse and NYSE Euronext offers:
compelling industrial logic based on the shared vision that is consistent with the long-term strategy of both companies’ Boards of Directors;
a combination that preserves competition and delivers clear benefits to customers;
specific, clearly identified synergies of at least €550 million / US$798 million, including €400 million / US$580 million in full run-rate cost savings and at least €150 million / US$218 million in revenue enhancements;
high cash flows, superior credit profile and balance sheet that will provide financial flexibility to invest, grow and innovate;
a clear path to value creation for shareholders with significant equity upside and dividend potential of greater than US$1 billion at current payout ratio.
The presentation today also provided an update on integration planning and the regulatory approval process as the companies remain on track to close by the end of the year.
Deutsche Börse shareholders can tender their shares to the joint holding company of Deutsche Börse and NYSE Euronext (Alpha Beta Netherlands Holding N.V.). For each share of Deutsche Börse AG shareholders will receive one share of the Dutch holding. The acceptance period during which shares can be tendered will end on 13 July 2011. NYSE Euronext shareholders can vote for a merger of NYSE Euronext with a US subsidiary of the Dutch holding on 7 July 2011.