Jane Onyanga-Omara

USA TODAY

LONDON — The London Stock Exchange and Deutsche Boerse reached an agreement on the terms of a "merger of equals," the LSE announced Wednesday.

LSE shareholders will own 45.6% of the combined group and 54.4% will be owned by Deutsche Boerse shareholders, the LSE statement announcing the deal said.

The deal "brings together London, a leading global financial centre and Frankfurt, the home of the ECB (European Central Bank) and access point to Europe's largest economy," it added.

LSE and Deutsche Boerse are worth around $30 billion, based on their stock market value Wednesday.

The merged group will keep its headquarters in London and Frankfurt. The deal, which must get competition clearance from authorities in the European Union, the United States and Russia, is subject to regulatory approval.

The LSE also owns Italy's main stock exchange Borsa Italiana, based in Milan.

LSE chief executive Xavier Rolet said in a statement: "We are creating an industry-defining combination which will be a leading global market infrastructure business. We will create a European leader in global markets infrastructure."

LSE and Deutsche Boerse in merger talks

Deutsche Boerse CEO Carsten Kengeter added: "As a Combined Group we will create a European player that will compete on a global basis. It brings together two of the most respected and successful market infrastructure providers in the world to lead the way in European capital markets and set the benchmark for further growth and best-in-class services."

Exchanges are largely looking to mergers and expansion as a way to stay relevant in a rapidly globalizing securities marketplace.

Earlier this month Intercontinental Exchange (ICE), the owner of the New York Stock Exchange said it was considering making an offer for the LSE. It said it had not approached the LSE's board and no decision had been made on whether to pursue a bid.

NYSE owner ICE considers offer for London Stock Exchange