The Deutsche Boerse has revised its proposal for a merger with Euronext NV, which already has a deal with the New York Stock Exchange.

The financial terms of the proposal remain unchanged. Instead, it has revised its plans for the governance, of the new company, trading platforms, IT and locations. Deutsche Boerse maintains that its proposed combination with Euronext will create superior value, and will significantly contribute to the further integration of European financial markets.

It imagines that Euronext and Deutsche Boerse would be combined under a newly created Dutch company, operating under a new brand. This new company would pay out approximately €2 billion in cash to shareholders tendering their shares.

The combined group would be a federal organization, operating regulated markets in financial centers with local staff, according to local regulations. This includes cash markets in Brussels, Amsterdam, Frankfurt, Lisbon, and Paris, and derivatives markets operated by Eurex and Liffe. Information Services would be run from Amsterdam, cash equities in Paris, derivatives in Frankfurt and London, IT in Frankfurt and Paris and for Clearstream in Luxembourg.

And, the Supervisory Board and the Management Board would be composed with an equal number of representatives from Euronext and Deutsche Boerse, with an executive from Deutsche Boerse as CEO and a representative of Euronext as chairman.

Deutsche Boerse argues that its proposal offers Euronext shareholders a significantly higher share in the combined group than the net income contributions of the two companies would suggest. It also projects pre-tax annual gross synergies of approximately 300 million euros.

“The Supervisory Board has expressed its strong support for the revised proposal. We are convinced that on the basis of our revised proposal, stressing balance and federal concepts successfully developed by Euronext in the past, our proposal is convincing for Euronext stakeholders as well as for further partners in European countries, like Italy,” said Deutsche Boerse chairman Kurt Viermetz.