LSE and Deutsche Boerse agree 30 bln $ merger

9 years ago - Published in Finance, Fundamental Analysis

London Stock Exchange and Deutsche Boerse agree this morning 30 bln $ merger, creating Europe’s biggest securities-markets operator

LSE and Deutsche Boerse agreed this morning to an all-share merger, creating Europe’s biggest securities-markets operator worth more than $30 billion.

The companies said the combination would create about €450 million of cost savings a year and offer the opportunity to boost revenues.

"There is still a good chance that American outfit ICE will intervene to block the deal with an offer before a March 29 deadline. Even if ICE doesn’t step up, the merger is likely to spark regulatory unease in Europe where the combination of Eurex and LCH Clearnet would create a monopoly player in European derivatives clearing" enlights in a note Jasper Lawler, Market Analyst for CMC Markets.

The deal is conditional on receiving competition clearance from UE, USA and Russia. The exchanges have already started discussions with respective regulators.