Nasdaq and Intercontinental-Exchange Withdraw Bid for NYSE

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The Nasdaq and Intercontinental-Exchange are withdrawing their joint, $11 billion bid for the parent company of the New York Stock Exchange. This comes after the companies realized the deal could violate antitrust laws.

The withdrawal also means the stock exchange can proceed with its previous, $10 billion deal to combine with the German exchange operator Deutsche Boerse.

The Justice Department told Nasdaq and Intercontinental-Exchange that it would block the merger, claiming that the deal would greatly reduce competition for corporate stock listings services and other products.

"While we are surprised and disappointed in the antitrust division's conclusion, some of the uncertainty, at least as it relates to our joint proposal, has been resolved," said Nasdaq OMX CEO Bob Greifeld in a statement.

The board had twice rejected the Nasdaq and ICE bid in favor of the Deutsche Boerse offer despite the lower price.

NYSE shareholders are scheduled to vote in early July on the merger.

With reporting by Associated Press