The New York Stock Exchange (NYSE) has agreed to buy the pan-European Euronext exchange in a $20 billion merger.
Deutsche Boerse was also in the running for the deal but was edged out by the NYSE who offered a mix of $10 billion cash and shares offerings.
The move is a significant one as it creates the first ever transatlantic stock market, while the new firm will locate its US base in New York and its international headquarters in Paris and Amsterdam.
NYSE group chief executive John Thain will lead the merger alongside Euronext chief executive Jean-Francois Theodore who will act as head of international operations.
Mr Thain said: "[The deal is] an important development in the history of the NYSE, Euronext and the global capital markets.
"A partnership with Euronext fulfils our shared vision of building a truly global marketplace with great breadth of product and geographic reach that will benefit all investors, issuers, and our shareholders and stakeholders."
The merger is yet to be approved by NYSE shareholders.