Pursuits
NYSE-Deutsche Boerse Merger Is Free With Derivatives: Real M&A
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Derivatives are so valuable that Deutsche Boerse AG’s takeover of NYSE Euronext means the combined company may get a stock trading business for free.
Deutsche Boerse, in talks to buy the owner of the New York Stock Exchange, would acquire a company that generates at least half its net income from trading options and futures contracts, according to Macquarie Group Ltd. That portion of earnings will reach $462 million by 2013, based on analyst estimates compiled by Bloomberg. Add Deutsche Boerse’s projected profit from its Eurex unit and the combined entity will earn $1.18 billion from derivatives in the U.S. and Europe within three years.