21 August 2017
Find out more

HQ row fingered over likely LSE-Deutsche Bourse deal collapse

28 February 2017  |  6976 views  |  0 Dead end

As the £21 billion London Stock Exchange-Deutsche Bourse merger nears collapse, speculation is mounting that a fallout over the location of the combined group's headquarters - not the LSE's stake in Italy's MTS - is behind the deal's failure.

Yesterday, the LSE insisted that it would not cave to EU regulators' demands that it divest its 60% stake in Italian bond trading platform MTS. This, the exchange said, meant that the watchdog was "unlikely to provide clearance for the merger" when it hands down its verdict on 3 April.

However, suspicion is growing that the merger is really falling apart because of tension between the UK and German firms over where the combined headquarters will be be located.

When the deal was first agreed, last March, London was named as the location of the holding company. However, the UK's Brexit vote just months later altered thinking in Frankfurt, leading Deutsche Bourse to seek a change.

With politicians in both countries pushing their respective agendas, the LSE recently rejected a Deutsche Bourse proposal for a dual holding company structure, with bases in both London and Frankfurt, according to the London Evening Standard.

Now the merger looks set to collapse, with one insider on the German side telling the Standard that the MTS factor is a "weak excuse".

If the two European powerhouses do fail to combine - for the third time this century - it is expected that American rivals Intercontinental Exchange and CME Group will consider bidding for them.

Comments: (0)

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

Euronext enters exclusive talks over acquisition of LCH.Clearnet SA

Euronext enters exclusive talks over acquisition of LCH.Clearnet SA

20 December 2016  |  8653 views  |  0 comments | 4 linkedin
Europe opens in-depth probe into LSE/Deutsche Bourse tie-up

Europe opens in-depth probe into LSE/Deutsche Bourse tie-up

28 September 2016  |  4303 views  |  0 comments | 1 tweets | 7 linkedin
Brexit: Visa could move jobs to continent, LSE-Deutsche Bourse London HQ at risk

Brexit: Visa could move jobs to continent, LSE-Deutsche Bourse London HQ at risk

29 June 2016  |  8208 views  |  1 comments | 6 tweets | 10 linkedin
As merger approaches, LSE and Deutsche Boerse eye job cuts and IT savings

As merger approaches, LSE and Deutsche Boerse eye job cuts and IT savings

01 June 2016  |  5370 views  |  0 comments | 2 tweets | 7 linkedin
LSE and Deutsche Bourse confirm merger terms

LSE and Deutsche Bourse confirm merger terms

16 March 2016  |  8424 views  |  0 comments | 3 tweets | 2 linkedin
ICE prepares counterbid for London Stock Exchange

ICE prepares counterbid for London Stock Exchange

01 March 2016  |  7260 views  |  0 comments | 1 tweets | 6 linkedin
London Stock Exchange confirms merger talks with Deutsche Bourse

London Stock Exchange confirms merger talks with Deutsche Bourse

23 February 2016  |  8560 views  |  3 comments | 1 tweets | 3 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.dorsum.euvisit www.niceactimize.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
10607 views comments | 24 tweets | 23 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
8872 views 0 | 5 tweets | 1 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8852 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
8526 views comments | 10 tweets | 7 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
8260 views comments | 18 tweets | 16 linkedin

Featured job

Find your next job