19 October 2017
visit www.avoka.com

London Stock Exchange confirms merger talks with Deutsche Bourse

23 February 2016  |  8636 views  |  3 LSE 1

The London Stock Exchange has confirmed that it is holding merger talks with Deutsche Bourse under a reverse takeover deal that would give the German exchange a 54.4% stake in the combined group.

In a statement responding to speculation that triggered a sharp rise in the share price of both exchanges, the LSE says the proposed merger would lead to an "an industry-defining combination, creating a leading European-based global markets infrastructure group".

"The combination of LSE and Deutsche Bourse's complementary growth strategies, products, services and geographic footprint would be expected to deliver an enhanced ability to provide a full service offering to customers on a global basis," says the London exchange. "LSE and Deutsche Bourse believe that the potential merger would offer the prospect of enhanced growth, significant customer benefits including cross-margining between listed and OTC derivatives clearing (subject to regulatory approvals), as well as substantial revenue and cost synergies and increased shareholder value."

Under the proposals, the board of the combined group would be represented by equal numbers of LSE and DB directors and all key business units would continue to operate under their current brand names.

Discussion are continuing, with both parties stressing that any transaction would be subject to regulatory approval, LSE shareholder approval and Deutsche Bourse shareholders' acceptance, as well as other customary conditions.

The latest talks mark the second occasion on which both parties have performed a courtship dance, following a failed takeover attempt by the German exchange group in 2004.

Speaking to Bloomberg TV in November, LSE chief Xavier Rolet Rolet said that more consolidation is coming in the industry, and will only leave a handful of major exchange operators in the world, likely from the US, China and Europe.

“It’s starting to happen,” Rolet told the newsire. “Our industry is like a giant construction site.”

Comments: (3)

Lorna Charles
Lorna Charles - IBM - LONDON | 23 February, 2016, 15:27

Well that's one way of keeping us in the EU but why does the German Bourse have a majority shareholding.  I thought London was meant to be the Financial capital!!

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 24 February, 2016, 09:12

Very disappointing news.  So the fourth largest Stock Exchange in the world by market cap is to be acquired by the tenth largest? 
The LSE fought off numerous suitors over the years and is now in danger of ceding control of its own destiny to its biggest European rival.  I hope sincerely that this initiative fails as spectacularly as all of the previous attempts.  

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 24 February, 2016, 10:14

Disappointing for London maybe in terms of % shares vs. market caps, but I think this reflects the relative strengths of the two groups in that lttle side project area known as derivatives.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

London Stock Exchange advances on ETF market with XTF acquisition

London Stock Exchange advances on ETF market with XTF acquisition

21 December 2015  |  9147 views  |  0 comments | 3 tweets | 4 linkedin
Deutsche Bourse Asian expansion plans hit by turbulence and software delays

Deutsche Bourse Asian expansion plans hit by turbulence and software delays

10 September 2015  |  4362 views  |  0 comments | 2 tweets
LSE and Boat to build MiFID II trade reporting service

LSE and Boat to build MiFID II trade reporting service

03 September 2015  |  8611 views  |  0 comments | 3 tweets | 4 linkedin
Deutsche Bourse makes move on currency markets with 360T acquisition

Deutsche Bourse makes move on currency markets with 360T acquisition

27 July 2015  |  4010 views  |  0 comments | 2 tweets | 1 linkedin
London Stock Exchange partners Wipro to launch reconciliation utility

London Stock Exchange partners Wipro to launch reconciliation utility

09 July 2014  |  6761 views  |  0 comments | 6 tweets | 3 linkedin
Deutsche Bourse acquires stake in fixed income platform Bondcube

Deutsche Bourse acquires stake in fixed income platform Bondcube

12 February 2014  |  5302 views  |  0 comments | 3 tweets | 4 linkedin
London Stock Exchange to open central securities depository

London Stock Exchange to open central securities depository

16 July 2013  |  6125 views  |  0 comments | 4 tweets
London Stock Exchange to acquire Turquoise Derivatives

London Stock Exchange to acquire Turquoise Derivatives

05 July 2013  |  7228 views  |  0 comments | 5 tweets | 4 linkedin
IT savings to the fore as LSE agrees revised offer for LCH.Clearnet

IT savings to the fore as LSE agrees revised offer for LCH.Clearnet

07 March 2013  |  5907 views  |  0 comments | 2 linkedin
LSE acquires controlling interest in Gatelab

LSE acquires controlling interest in Gatelab

11 February 2013  |  5959 views  |  0 comments | 1 tweets | 1 linkedin
SGX denies LSE merger speculation

SGX denies LSE merger speculation

20 July 2012  |  4769 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlRegister now

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15757 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8922 views comments | 16 tweets | 22 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8008 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7116 views comments | 9 tweets | 17 linkedin
Santander InnoVentures leads $6m funding round for Mexico's ePesosSantander InnoVentures leads $6m funding r...
6265 views comments | 6 tweets | 3 linkedin

Featured job

Competitive base + commission + benefits
New York City, NY - USA

Find your next job