NYSE executive sees job losses after Deutsche Boerse merger
NEW YORK (Reuters) - A top NYSE Euronext NYX.N executive said the U.S.-based exchange's merger with Germany's Deutsche Boerse AG (DB1Gn.DE) would lead to more job losses outside the United States than inside the country, in the short term.
Lawrence Leibowitz, chief operating officer of the Big Board parent company, told a hearing in Washington that he "wouldn't expect many job losses" in the United States, adding the $10.2 billion deal would position the combined company to grow in the longer term.
"I would expect that there will be more jobs lost outside the United States in the short run. There will be few jobs lost inside the United States, and then there will be growth of jobs in the United States and abroad as well," he said at a House of Representatives subcommittee hearing on the deal.
"This is not a deal about cutting jobs, it's about creating value, and we think in the long run this is going to be good for America and American jobs," Leibowitz said when questioned by lawmakers about possible negative consequences.
Deutsche Boerse struck the acquisition of NYSE Euronext back in February, a plan that would create the world's largest exchange operator trading virtually every asset class and running operations in the United States and across Europe.
Shareholders of the German bourse would own 60 percent of the combined company, which would have dual headquarters in Frankfurt and New York. NYSE Euronext chief executive Duncan Niederauer, an American, would be CEO.
Since launching its bid, Deutsche Boerse has increased its forecast annual synergies by more than a third. It now expects 150 million euros ($215 million) in additional annual revenues and 400 million euros in cost reductions.