Matilda, daughter of Henry I King of England, Duke of Normandy, has a son by Emperor Henry V, fourth of the Salian dynasty. She yields her claims on England to Stephen in return for English support of the Salian dynasty and a large bribe. Henry, Duke of Normandy, finally becomes Emperor Henry VI at the expense of the Hohenstaufen, particularly Frederick Barbarossa.
The Salian dynasty rules Germany, two stem duchies, and the French Duchy of Normandy. for over four centuries, thereby creating a stable royal line and a sense of identity lost in OTL. The preservation of the Duchies of Swabia and Thuringia and the expansion of the Duchy of Thuringia into the Margraviate of Meissen impedes the collapse of large parts of Germany into tiny statelets. The dominance of the Salian line hinders the initial expansion of the Hohenzollern and Habsburg dynasties.
Sicily passes to the Hohenstaufen and from there to the prolific Wettin dynasty of Meissen.
Aquitaine passes briefly to the Champagnois Kings of England, but the King of France transfers Aquitaine to Alice, Queen of Jerusalem, as a precautionary measure and turns it into a royal demesne in 1267.
The Champagnois Kings of England also become Kings of Navarre. The marriage of Joan Queen of England to Philip IV of France creates a short-lived Capetian Empire of England, France, and Navarre during the weak rule Emperor Otto V [OTL Edward II].