European stock exchanges announce deal to merge

The London Stock Exchange and Germany's Deutsche Boerse say they're merging in an all-stock deal that will leave the German side with a majority of shares.

The two companies are calling it a merger of equals that will accelerate their growth and offer customers more products and services.

They said in a news release Wednesday that they will set up a U.K.-based holding company that will then acquire the London Stock Exchange Group PLC and Frankfurt-based Deutsche Boerse AG. When the deal is done, Deutsche Boerse shareholders will hold 54.4 percent of the holding company and Deutsche Bank CEO Karsten Kengeter will be chief executive.

The company would have headquarters in both London and Frankfurt. The deal needs approval from regulators in the European Union, the U.S. and Russia.