Sunday 4 December 2016

Job losses to follow merger of LSE with Boerse rival

Noor Zainab Hussain

Published 02/06/2016 | 02:30

The London Stock Exchange (LSE). Photo: PA
The London Stock Exchange (LSE). Photo: PA

London Stock Exchange Group said its planned €26.8bn merger with German rival Deutsche Boerse could result in 1,250 job cuts across the combined group and should eventually lead to €250m in revenue benefits a year.

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LSE, which agreed in March to merge with Deutsche Boerse to create a pan-European trading house, said it expected to achieve these benefits in the fifth year after the deal is completed.

The company, which owns Borsa Italiana and the London Stock Exchange, said about €160m per year would come by the third year after the deal closes.

The revenue benefits would come from the combination of the combined group's index and information services business including the FTSE Russell and STOXX indexes.

They would also come from the development of trading and clearing products, LSE said. LSE reiterated its expectations for cost savings of €450m annually from the third year.

It said that while there would be job cuts, 200 new roles could also be created because of growth plans.

LSE, which has its headquarters in London, employs about 5,550 staff, according to its 2015 annual report. Deutsche Boerse has around 5,283 staff, according to its annual report for 2015.

(Reuters)

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