Monday 23 October 2017

Deutsche Boerse and LSE take fresh run at merger

Financial markets.
Financial markets.
John Mulligan

John Mulligan

Deutsche Boerse and the London Stock Exchange (LSE) are taking a fresh run at a merger that would create a large European exchange operator potentially capable of facing down strong competition from the United States and Asia.

LSE has a market capitalisation of £9.6bn (€12.2bn), while Deutsche Boerse’s market cap is €15.4bn.

LSE shares are up 20pc this afternoon. Shares in Deutsche Boerse are 8pc higher.

The LSE said in a statement it was holding detailed discussions on an all-share merger under a new holding company that would give Deutsche Boerse shareholders a 54.4pc stake and LSE shareholders 45.6pc.

The talks, using code names Delta for Deutsche Boerse and Luna for the LSE, are at an early stage, a person familiar with the matter told Reuters earlier.

Deutsche Boerse, which had worked on a joint venture called iX with the LSE in 2000 before making a full-blown but failed attempt to take over its British counterpart in late 2004, was not immediately available for comment.

Deutsche Boerse chief executive Carsten Kengeter, on taking the German exchange operator's helm in June, said he had an "open mind" on both bolt-on and large acquisitions as part of his strategy to boost growth and revenue.




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