LSEG-Deutsche Börse Merger Unlikely to Get a Go Ahead
- The LSEG says it will nonetheless continue to take steps to seek to implement the merger with Deutsche Börse.
The grand merger between the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Group (LSEG) and Deutsche Börse seems to be all but dead, unless some major changes are announced.
The LSEG Board today revealed that it would not commit to the divestment of MTS S.p.A (an electronic Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real for European wholesale Government Bonds and other fixed income securities) as the European Commission requires it to approve the deal. The LSEG believes that the Commission is unlikely to provide clearance for the merger under these conditions.
Explaining the decision, the group says that MTS is a systemically important regulated business in Italy due to its significant role in the trading of Italian Government bonds and other securities. Although MTS is not in itself a major contributor to LSEG Group revenues, the LSEG’s Italian businesses represent a significant proportion of its revenues and profitability.
Following dialogue with Italian authorities regarding the LSEG’s Italian businesses in the context of the merger, the LSEG board believes that it is highly unlikely that a sale of MTS could be satisfactorily achieved, even if it were to give the commitment. Moreover, the LSEG board believes that the offer of such a remedy would jeopardise the LSEG’s critically important relationships with these regulators and be detrimental to the LSEG’s ongoing businesses in Italy and the group, were the merger to be completed.
Nevertheless, the LSEG board says that it remains convinced of the strategic benefits of the merger and recognises the strong support from shareholders for the transaction. The LSEG will continue to take steps to seek to implement the merger.
The grand merger between the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Group (LSEG) and Deutsche Börse seems to be all but dead, unless some major changes are announced.
The LSEG Board today revealed that it would not commit to the divestment of MTS S.p.A (an electronic Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real for European wholesale Government Bonds and other fixed income securities) as the European Commission requires it to approve the deal. The LSEG believes that the Commission is unlikely to provide clearance for the merger under these conditions.
Explaining the decision, the group says that MTS is a systemically important regulated business in Italy due to its significant role in the trading of Italian Government bonds and other securities. Although MTS is not in itself a major contributor to LSEG Group revenues, the LSEG’s Italian businesses represent a significant proportion of its revenues and profitability.
Following dialogue with Italian authorities regarding the LSEG’s Italian businesses in the context of the merger, the LSEG board believes that it is highly unlikely that a sale of MTS could be satisfactorily achieved, even if it were to give the commitment. Moreover, the LSEG board believes that the offer of such a remedy would jeopardise the LSEG’s critically important relationships with these regulators and be detrimental to the LSEG’s ongoing businesses in Italy and the group, were the merger to be completed.
Nevertheless, the LSEG board says that it remains convinced of the strategic benefits of the merger and recognises the strong support from shareholders for the transaction. The LSEG will continue to take steps to seek to implement the merger.