“Merger of Equals” Agreed by London Stock Exchange, Deutsche Börse

Creation of exchange powerhouse agreed, deal expected to be completed by end of year or early 2017.

deutsche-borse-headquarters-eschborn
Deutsche Börse has fended off interest from rivals, including Intercontinental Exchange, to agree a deal with London Stock Exchange.

Under the terms of the "industry-defining merger" a new London-domiciled holding company, UK TopCo, has been established. Deutsche Börse shareholders will own 54.4 percent of the combined entity, with LSE shareholders holding the remaining 45.6 percent, led by current Deutsche Börse chief executive Carsten Kengeter. LSE chief executive Xavier Rolet will step down upon completion of the deal, which is expected to occur either by the end of 2016 or early 2017.

Despite interest from rival suitors and the ongoing uncertainty of the UK's involvement in the European Union, Kengeter highlighted the pan-European collaborative advantages for the newly-formed exchange group. The two firms estimate that the deal will lead to cost savings of nearly $500 million (€450 million) per year, via "technology-enabled efficiencies, removing duplication in the corporate center and business segment optimization".

"Strengthening the link between the two leading financial cities of Europe, Frankfurt and London, and building a network across Europe with Luxemburg, Paris and Milan will strengthen European capital markets," said Kengeter in a statement. "It is the logical evolution for our companies in a fundamentally changing industry. As a combined group we will create a European player that will compete on a global basis."

Last week Deutsche Börse announced it is selling International Securities Exchange (ISE) to Nasdaq for $1.1 billion as the group seeks to reorganize its portfolio and raise capital for the LSE merger.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe

You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.

Nasdaq reshuffles tech divisions post-Adenza

Adenza is now fully integrated into the exchange operator’s ecosystem, bringing opportunities for new business and a fresh perspective on how fintech fits into its strategy.

You need to sign in to use this feature. If you don’t have a WatersTechnology account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here