Linklaters and Wachtell lead on Deutsche Boerse/NYSE merger

11 Feb, 2011

Linklaters and Wachtell Lipton Rosen & Katz have taken lead roles on the proposed merger between Deutsche Boerse and NYSE Euronext in a deal that looks set to create world’s largest stock exchange by revenue and profits.

Linklaters is advising longstanding client Deutsche Boerse on the proposed all-stock tie-up, which would see the merged business jointly based in New York and Frankfurt.

Linklaters is fielding a team led by Duesseldorf-based capital markets partner Ralph Wollburg, who worked alongside Brussels antitrust chief Alec Burnside.

The New York Stock Exchange (NYSE) instructed Wall Street leader Wachtell, which is fielding a team led by corporate partner David Karp. Benelux leader Stibbe is advising on corporate issues.

Cleary Gottlieb Steen & Hamilton is advising on EU competition issues with a team led by London-based competition partner Nick Levy alongside Brussels-based competition partner Brian Byrne.

The deal, which looks set to create a business with a combined market value of $24bn (£15.1bn), will be regarded as a hugely significant deal by all advisers.

A joint statement issued by the two businesses said that Deutsche Boerse shareholders would own just under 60% of the combined business, while NYSE shareholders would hold just over 40%. The motivation for the proposed tie-up would be to make significant savings and to boost revenues.

The announcement of the merger bid came on the same day (9 February) that the London Stock Exchange confirmed that it was in advanced talks regarding a tie-up with Canada’s TMX, which landed lead advisory roles to Freshfields Bruckhaus Deringer and Allen & Overy (A&O).

The two deals look set to trigger a further round of consolidation as the world’s leading stock exchanges seek to gain a stronger global footprint and achieve economies of scale.

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