NYSE group offered a deal to buy European bourse operator euronext. The cost of €7.78billion was set for the whole deal. This has give a tough time to the rival bidder Deutsche Bourse & put it on track to create the first trans-Atlantic stock exchange.

The new company has now been termed as a merger of equals by the pair, and will be called NYSE Euronext. It will have its US head quarters in New York & international headquarters in Paris. The derivatives business of the newborn company will be located in London.

Stock exchanges across the globe are being pressurized to combine, cut costs & increases execution speed. However, despite consolidation within Europe & the US, there has not so far been a major deal linking exchanges in both continents. The race started this year when Nasdaq stock market, the No.2 US equities exchange, bid for London & was rebuffed.

Under the terms of the new deal, holders of Euronext ordinary shares will be offered the right to exchange each of their shares for 0.98 shares of NYSE Euronext stock & 21.32 euros in cash. They can elect to receive all in shares or all in cash through a mix-and-match procedure.

The new company will possess a combined market capitalization worth $20 billion average daily trading value of about $100 billion, & total market cap of listed cost of $27 trillion.

The combination would successfully produce cost & revenue synergies of $375million. $250million out of this will come from analyzing the IT Systems & platforms of the group.