German regulator: Merged stock exchange does not belong in London

Europe's most important stock exchange should not be based outside the European Union, Germany's financial regulator said Tuesday, criticizing merger plans by Germany's Deutsche Boerse and the London Stock Exchange (LSE) amid last week's Leave vote.

"It's hard to image the most important stock market in the euro region being steered from a location outside the European Union," said the president of the federal agency, Felix Hufeld.

"There must surely be some readjustments made there," he added while in Frankfurt for a conference on Tuesday.

Deutsche Boerse and the LSE said in March that they had agreed to the terms of an "industry-defining" merger that would create a European trading powerhouse with its legal headquarters based in London.

However, despite assurances from both companies that they were fully committed to the merger, Britain's planned exit from the bloc has given new life to criticism about the planned London headquarters.

Shareholders are expected to vote on the plans in July, and the two companies' merger deal still requires clearance from more than 20 authorities, including the EU's competition regulators and regulators in the German state of Hesse, who have the power to block the deal.

Germany's federal financial regulator no longer plays a formal role in the proceedings, though authorities are expected to pull on its expertise when seeking advice in order to make their decision.

Last update: Tue, 28/06/2016 - 17:49
Author: 

More from Business

US unemployment rate dips to 9-year low

The US unemployment rate fell in November to 4.6 per cent, a nine-year low, the Bureau of Labour Statistics said...

Chinese firm building full-size Titanic replica for tourists

Construction has begun on the world's first full-size replica of the Titanic in China, a country that fell in love...

Erdogan calls on Turks to sell dollars and buy lira and gold

President Recep Tayyip Erdogan urged Turkish citizens on Friday to sell their dollars and buy gold and lira, as the...

EU agrees to let Germany introduce road toll, staving off legal feud

The European Commission has approved Germany's plan to introduce a road toll on its motorways, top transport...

Danish container shipping giant Maersk Line to buy German rival

Global shipping giant A/S Maersk Line of Denmark on Thursday announced plans to grow its business by buying German...