Deutsche Boerse buys Eurex from SIX Group
FRANKFURT (Reuters) - Deutsche Boerse (DB1Gn.DE) on Tuesday said it had struck a deal to take full control of electronic derivatives exchange Eurex by buying out co-owner SIX Group of Switzerland.
The deal will see Deutsche Boerse buying a 50 percent stake in Eurex for 295 million euros ($432.7 million) in cash and 295 million euros in shares of a combined Deutsche Boerse and NYSE Euronext NYX.N NYX.N entity.
Under the agreement, which is set to be completed as of January 1, 2012, Deutsche Boerse would receive all Eurex sales and profits rather than the 85 percent reflected in the consolidated accounts of Deutsche Boerse.
In a statement, Reto Francioni, Chief Executive Officer of Deutsche Boerse said, "With this step Eurex can grow more sustainably and dynamically and contribute its strength in the combined Deutsche Boerse and NYSE Euronext group. At the same time we are pleased that a valued and interesting partner will take a stake in the new combined group.
Deutsche Boerse said that the timing of the deal would be driven by the closing of the Deutsche Boerse-NYSE Euronext combination, which is expected for end-2011. Deutsche Boerse added that Eurex will continue to run the Swiss derivatives marekt through Eurex Zurich AG.
NEW YORK - Earnings season shifts into high gear next week, and with nearly one-third of S&P 500 names set to post results, investors hope the news provides a catalyst to buy stocks and leave the market's recent weakness in the dust.
- The troubles at BlackBerry Ltd, which fired more than half its staff and lost more than 90 percent of its market value as consumers shunned its smart phones, might have spelled disaster for the company's hometown of Waterloo, Ontario. Instead, there are hot sports cars in the streets and new companies filling the refurbished office buildings. | Video
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.