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Deutsche Boerse on Wednesday announced a merger with the London Stock Exchange Group (LSE), with the combined group expected to maintain its headquarters in London and Frankfurt.

Deutsche Boerse said it expected to achieve synergies equivalent to some 20 percent of the combined group's 2015 adjusted operating costs of approximately 2.2 billion euros ($2.44 billion).

The plaque of the Deutsche Boerse AG is pictured at the entrance of the Frankfurt stock exchange. REUTERS/Alex Domanski

Deutsche Boerse shareholders will own 54.4 percent of the new group, while LSE equity holders will hold 45.6 percent.

Under the proposed deal, Carsten Kengeter, CEO of Deutsche Boerse, would assume the role of CEO and executive director of the combined group. LSE Chairman Donald Brydon would become chairman of the combined group, while Joachim Faber, Deutsche Boerse supervisory board chairman, would become deputy chairman of the board.

The deal is subject to antitrust clearances and other required regulatory consent and is expected to be completed either by the end of this year or the first quarter of 2017.

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