NYSE to Buy American Stock Exchange

Under the deal, which is the first for NYSE Euronext under the leadership of Duncan Niederaur, who was named CEO after John Thain left to helm Merrill Lynch, the company will pay $260 million in NYSE Euronext common stock for Amex. Additionally, Amex members will be entitled to receive additional shares of NYSE common stock based on the net proceeds from the expected sale of Amex's lower Manhatten headquarters.

The NYSE collaborated with Euronext in April, and its rival Nasdaq Stock Market struck deals in 2007 to buy the Philadelphia Stock Exchange, the Boston Stock Exchange, and, with Borse Dubai, the Stockholm-based OMX, according to Forbes.

The deal to buy the exchange comes amid a vast wave of consolidation among exchanges, and confirms previous rumors of NYSE’s interest in the Amex, which is one of the five largest U.S. options exchanges, along with Chicago Board Options Exchange, International Securities Exchange and the Philadelphia Exchange, Forbes reports.

NYSE revamped its automated options trading business last year, and the deal will help it grow in that area, according to Forbes.