London and Frankfurt-based exchanges see "substantial revenue and cost synergies" from planned merger of equals
Tuesday’s news that the
London Stock Exchange and Deutsche Boerse are in merger talks
raises two main questions. Firstly, will the deal be blocked by
European competition authorities over a possible clearing
monopoly? And, will CME Group, the Intercontinental Exchange or
Nasdaq mount a counter-bid?
First things first
The LSE and Deutsche Boerse said on
Tuesday they are in talks over a "merger of equals" that will
see the German exchange’s shareholders take 55% of
shares in the new firm and LSE's owners taking the rest.
They said they see "substantial revenue
and cost synergies" from the merger, with Deutsche Boerse
adding in a statement: "The combination of Deutsche Börse
and LSE’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."
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