Deutsche Börse Shareholder Approval Now a Fact, but Deal Prospects Grim
- The merger between the London Stock Exchange and Deutsche Börse is on its way to get final shareholder approval
Shareholders of Deutsche Börse have been much more reluctant to approve the merger deal with 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 Read this Term (LSE) than its counterparts across the English Channel. After a special amendment that only required the approval of 60 per cent of shareholders instead of the original 75, the deal is finally looking to take shape.
As of 40 minutes ago, Reuters has reported that Deutsche Börse’s shareholders are likely to receive the approval of its stakeholders to proceed with the LSE merger. With over 60 per cent gained, the first hurdle for this transaction that has become increasingly difficult following the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term vote is now clear.
Regulatory Challenges Remain High
The $27 billion merger has been challenged by some German politicians in the aftermath of the vote. The more difficult aspect of the deal now would be to get anti-trust approval from the European Union authorities, German financial regulator BaFin and the United Kingdom’s Financial Conduct Authority (FCA).
The German watchdog has been the first to voice its concerns about the location of the new headquarters of the entity, which are set to be in London. With the United Kingdom leaving the European Union, BaFin is considering the move to be unacceptable.
On a different end of the spectrum, Portuguese and Belgian authorities have been pressuring European anti-trust authorities to prevent the deal, arguing that the newly formed entity will make access to financial markets in smaller countries more difficult.
While European and UK regulators are holding the keys to the deal, both sides have expressed flexibility on the terms of the merger agreement, aiming to sweet-talk the supervisory authorities into approving the merger.
Shareholders of Deutsche Börse have been much more reluctant to approve the merger deal with 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 Read this Term (LSE) than its counterparts across the English Channel. After a special amendment that only required the approval of 60 per cent of shareholders instead of the original 75, the deal is finally looking to take shape.
As of 40 minutes ago, Reuters has reported that Deutsche Börse’s shareholders are likely to receive the approval of its stakeholders to proceed with the LSE merger. With over 60 per cent gained, the first hurdle for this transaction that has become increasingly difficult following the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term vote is now clear.
Regulatory Challenges Remain High
The $27 billion merger has been challenged by some German politicians in the aftermath of the vote. The more difficult aspect of the deal now would be to get anti-trust approval from the European Union authorities, German financial regulator BaFin and the United Kingdom’s Financial Conduct Authority (FCA).
The German watchdog has been the first to voice its concerns about the location of the new headquarters of the entity, which are set to be in London. With the United Kingdom leaving the European Union, BaFin is considering the move to be unacceptable.
On a different end of the spectrum, Portuguese and Belgian authorities have been pressuring European anti-trust authorities to prevent the deal, arguing that the newly formed entity will make access to financial markets in smaller countries more difficult.
While European and UK regulators are holding the keys to the deal, both sides have expressed flexibility on the terms of the merger agreement, aiming to sweet-talk the supervisory authorities into approving the merger.