Although the direct effect on metals may not be felt immediately, Deutsche Boerse has agreed to buy NYSE Euronext.
The merger still has to be approved by the SEC, but there does not seem to be any hiccups that could get in the way of finalizing this deal.
The new company will list shares in Frankfurt, Paris and New York. It will become the largest market for derivatives globally.
As far as the name goes, they are saying that NYSE has to be first. That should be fair to offset the exchange stock value of .47, and losing majority control of NYSE Euronext, as DB will have a 60% controlling share with 10 seats on a 17 seat board.
The deal is an all stock transaction that is valued at $9.53 billion. Although good for shareholders, it is somewhat disheartening for Americans, as the NYSE mark is synonymous with our countries financial reputation of the past.
You can read Bloomberg’s report here;
There has been no direct effect on precious metals, however we did feel the news was worth telling our readers about.