NASDAQ Combined ICE&Nbsp; Mergers And Acquisitions NYSE

April 1st, local time.

NASDAQ and ICE reported a takeover price of $42.50 per share ($14.24 in cash), which is 19% higher than the previous German exchange's purchase price of $35 per share, which is 27% higher than the price before the merger of the German exchange.

The NYSE closed 35.17 dollars on the previous day. After the announcement, it rose 12% in pre trading, while Deutsche bourse fell 3%.

Under the terms of the paction, ICE will win the derivatives business of the NYSE and compete with the Chicago commodity exchange group (CME).

NASDAQ will get stock and other businesses.

The two companies will acquire NYSE in cash and shares, and the NYSE shareholders will receive $14.24 cash, 0.4069 NASDAQ shares and 0.1436 shares of ICE shares per share.

NASDAQ CEO Robert Greifeld said in a statement, "our industry is undergoing a historic change. The merger of two major US exchanges will create a global exchange platform, which can bring benefits to investors, issuers and other market participants.

We believe that mergers will increase pparency and liquidity in the US market and create new jobs when new companies finance. "

NASDAQ joined ICE in a hostile bid against the NYSE, indicating that they must respond to changes in the global exchange industry.

In the middle of last month, the NYSE and Deutsche bourse agreed to announce a $10 billion full M & amp; acquisition, hoping to build the world's largest stock exchange.

At the same time, the London Stock Exchange hopes to merge with the Toronto stock exchange to create the largest market for mining and natural resources.

BATS, the third largest stock exchange in the US, has acquired CHI-X Europe, hoping to build the largest stock trading platform in Europe.

The Singapore exchange is discussing mergers and acquisitions in Australia.

A week ago, the Australian exchange had declared that it must join the wave of global exchange consolidation.

An executive at a global exchange said in an interview with our reporter that "the emerging electronic exchanges have grabbed almost the share of traditional exchanges in recent years. If we do not quickly integrate resources, the traditional exchanges will face a survival crisis."

American exchanges are also declining in global competition.

ICE data show that in 2010, the scale of us financing accounted for only 16% of the global total.

Last year, only one of the world's ten largest IPO companies was in the United States, and this is a GM owned by the US government.

The exchange will increasingly rely on the scale advantage in the global market competition. If the paction is completed, NASDAQ will become the largest player in the global stock exchange.

But the completion of the paction also faces enormous obstacles.

The threshold of hostile takeovers is even higher.

NASDAQ and NYSE are long-term competitors. There is still much uncertainty as to whether the two companies can fit in well.

Deutsche bourse has yet to say how it will respond.

Trading financing will also bring challenges to NASDAQ, which has repurchased large amounts of shares and carried nearly $2 billion 200 million in long-term debt.

But the two companies say they have received $3 billion 800 million in financing commitments from Bank of America and Wells Fargo.

According to the agreement reached before the NYSE and Deutsche bourse, if other bidders destroy the paction, the break-up cost will be as high as 340 million dollars.

Even if the NYSE shareholders accept the offer from Nasdaq and ICE, the deal may face antitrust questioning.

The NYSE and Nasdaq account for the first and second place in the US stock market respectively, accounting for about half of the US market share.

However, ICE chairman and CEO Jeff Sprecher said at the analyst meeting on the same day, "I think the regulatory problem is very small" before the US regulators approved CME to buy the Chicago exchange (CBOT).