Deutsche Boerse unveiled details of a merger with the London stock exchange


Deutsche Boerse and the London stock exchange (LSE) has made another step towards the creation of a large European stock market capitalization of $30 billion, which could become a serious competitor to American sites that are already coming to market of the Old world. Today the company announced the terms of the deal, which has yet to receive the approval of the Supervisory authorities. Operators also discussed the options of merging with the governments of Britain, Germany, Italy and France.

In the case of the transaction, the combined structure will be included in the British registry of legal entities as a public limited liability company (eng. Public Limited Company, PLC) and will get two head offices – in London and Frankfurt. The main joint patterns will be appointed CEO of Deutsche Boerse Karsten Kengeter, Executive Director of LSE Xavier Rolet leave office, released today, noted in a joint statement, Deutsche Boerse and LSE.

The two companies are considering merger as a transaction that can change the balance of power in global stock market operators. Attempts by Deutsche Boerse and LSE to create the leading European exchange operator, which identifies stocks, is a platform for trading shares and derivatives, and also offers trading, clearing and settlement twice failed in 2000 and 2004-2005, according to Reuters.

The deal will allow the London, considered the main financial center of Europe, to maintain economic ties with the continent, even in the UK is scheduled for June referendum on membership of the Kingdom in the EU. Today the company said that the merger will depend on the results of the British plebiscite: “the LSE and Deutsche Boerse believe that the merger will create good conditions in order to provide services to customers in the international market, regardless of the outcome of the referendum in the UK on membership in the European Union. In a joint statement clarifies that brexit (Britain exit) can “affect the volume or nature of transactions in different financial centers, who will use the services of the combined group”. The top management of the companies created a Committee charged to make recommendations on the issue associated with brexit (Britain exit) risks.