London Stock Exchange, Deutsche Boerse discuss "merger of equals"

The London Stock Exchange (LSE) and Germany's Deutsche Boerse

The companies are in talks over the creation of a European-based "global markets infrastructure group" that would rival the world's largest stock exchange groups including CME Group and Hong Kong Stock Exchanges and Clearing.

Shareholders in the Frankfurt-based Deutsche Boerse would take a 54.4-per-cent stake in the new entity and LSE shareholders would take the remaining 45.6 per cent, the companies said.

The terms of a potential deal would see Deutsche Boerse shareholders receiving one share in the new entity for each original share, and LSE shareholders receiving 0.4421 shares per original share.

The move follows several attempts by Deutsche Boerse to merge with or acquire other exchange groups. The company was stymied in its attempt to merge with the New York Stock Exchange due to competition concerns and failed in a previous attempt to take over the LSE.

Shares in the LSE Group were up 14 per cent in Tuesday trading, while Deutsche Boerse stocks rose by 2.8 per cent.

Last update: Tue, 23/02/2016 - 19:25
Author: 

More from Business

US prosecutors finalize 7.2-bln-dollar settlement with Deutsche Bank

The US Justice Department announced a 7.2-billion-dollar settlement Tuesday with Deutsche Bank over allegations that...

General Motors announces 1-billion-dollar investment in US workforce

General Motors will join other carmakers in opting to invest and hire inside the United States, the company...

Tobacco giant BAT agrees to 49-billion-dollar takeover of US rival

British American Tobacco Plc on Tuesday said it has finalized a deal to acquire 57.8 per cent of shares of US rival...

IMF raises China growth forecast, but warns of sharper slowdown

China's economy will expand by 6.5 per cent this year, the International Monetary Fund said on Monday, as it warned...

Trump's warning to German carmakers hits shares

Shares in German carmakers tumbled on Monday after incoming US president Donald Trump threatened the industry with...