The London Stock Exchange (LSE) Group has agreed the terms of a "merger of equals" with its German counterpart, Deutsche Boerse.
The deal will create one of the world's largest stock exchange companies in the world, described as an "industry-defining combination" by LSE chief executive Xavier Rolet.
Despite the "merger of equals" tag-line, LSE shareholders will receive a 45.6% stake, with Deutsche Boerse shareholders taking 54.4%.
It is understood the merger will allow the company to save around 20% of its combined €2.2 billion operating costs.
The two exchanges said: "[The] combination of London, Frankfurt and Milan [already owned by LSE] will provide a platform for financing and promoting economic growth of European companies and be an attractive offering to Asian and US companies looking to access investors and capital".
The two will continue to operate as individual brands, keeping their respective bases in London and Frankfurt. But the new holding company, UK TopCo, will be headquartered in London.
