WASHINGTON, December 20 (RIA Novosti) – The symbol of American capitalism for more than two centuries, the New York Stock Exchange (NYSE) is being sold to the rival IntercontinentalExchange (ICE) for $8.2 billion, ICE announced Thursday.
“Our transaction is responsive to the evolution of market infrastructure today and offers a range of growth opportunities,” said ICE chairman and chief executive Jeff Sprecher in a statement.
Under the terms of the deal ICE will pay $33.12 per NYSE Euronext share. Two-thirds of the $8.2 billion deal will be paid in ICE stock with one third in cash.
ICE, a 12-year-old startup based in Atlanta, runs other international trading exchanges.
In recent years, stock trading has been overshadowed by the growing importance of derivatives and options, CNN Money reported.
As a result ICE, which operates commodities and derivatives markets around the world, has a larger market value than the NYSE Euronext, even though it is not as well known.
ICE executives said in a statement, little would change around the NYSE’s iconic trading floor located in Manhattan’s financial district.
The new combined company will host dual headquarters in both New York and Atlanta. ICE will also open a new office in Manhattan.
Sprecher will head the combined company as chief executive. Duncan Niederauer, NYSE’s chief executive, will become president, the statement said.
The board of directors of both companies has approved the deal. The fate of the buyout now lies in the hands of federal regulators and the shareholders of both companies.
According to media reports, the deal is expected to close in the second half of next year.