NYSE Euronext (NYSE: NYX) made an announcement that it has completed its acquisition of the American Stock Exchange. This deal has felt as though it has been on the books forever. We don’t know whether to say "Congrats!" or "Finally!" in this merger. We covered the original terms of the deal back on January 17, 2008. It’s been a tough time since then, although not because of the integration. NYSE shares were north of $80 for much of January, yet closed at $39.18 yesterday.
NYSE says it is becoming the third-largest U.S. options market andenhancing its leadership in ETFs, cash equities, closed-end funds andstructured products. It also expects that this merger will generateannualized run-rate cost savings in excess of $100 million by the endof 2009 and be accretive to earnings.
The NYSE expects the AMEX trading system to be retired and migrated toNYSE Euronext in December. The floor will be relocated in early 2009to the NYSE location. This deal was valued at $260 million in NYSEstock plus the distribution to exchange members for the sale proceedsof the AMEX headquarters in New York.
Jon C. Ogg
October 1, 2008
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