Tuesday 20 August 2019

London Stock Exchange Group confirms £22bn Refinitiv merger

The company also unveiled a rise in half-year profits.

(Nick Ansell/PA)
(Nick Ansell/PA)

By Alys Key, PA City Reporter

London Stock Exchange Group has agreed to buy data provider Refinitiv in a deal worth 27 billion US dollars (£22.3 billion).

The announcement follows LSEG’s confirmation earlier this week that it was in talks to acquire the business, causing a spike in its share price.

The transaction will result in Refinitiv shareholders, including Blackstone and Thomson Reuters, holding a 37% stake in the enlarged company and less than 30% of voting rights.

In a statement confirming the acquisition, LSEG said the combined business would offer “significant customer benefits” by increasing its global footprint and range of customer offerings.

It will also allow the group to eye up more opportunities for innovation and future growth.

The new business will target revenue growth of between 5% and 7% over the first three years following completion as well as annual cost savings of at least £225 million by the end of the first five years.

LSEG chief executive David Schwimmer, who will lead the enlarged group, said: “This transformational acquisition creates a multi-asset class capital markets business and brings world class data content, management and distribution capabilities to LSEG, accelerating our strategy and expanding our global footprint. 

“This positions us in key areas of future growth as a global financial markets infrastructure leader.”

Refinitiv CEO David Craig will remain in his job and join LSEG’s executive committee.

The announcement coincided with LSEG’s half-year report, which showed total revenue for the six months to June 30 up 7% to £1.02 billion.

Profit before tax rose 1% to £363 million.

Mr Schwimmer said: “We have continued to invest across our businesses, working in partnership with customers to deliver innovative products and services, while continuing to control costs.

“The group remains well positioned in an evolving regulatory and macroeconomic environment and we expect to make further progress in the second half.”

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