LSE says Deutsche Boerse merger in doubt


The London Stock Exchange on Feb. 26 said it is "highly unlikely" it will be able to meet antitrust conditions set by Brussels for its tie-up with Deutsche Boerse, throwing the merger into doubt.

The announcement by LSE, which also operates the Milan stock exchange, is the latest twist in its longstanding attempt to merge with the German stock exchange operator.

The LSE said it had examined the European Commission's request to divest its majority stake in Italian trading unit MTS, concluding it could not commit to such a request.

"The LSEG Board believes that it is highly unlikely that a sale of MTS could be satisfactorily achieved, even if LSEG were to give the commitment," LSE said in a statement.

The announcement comes after the Commission raised new concerns on February 16 about the merger, giving the company a deadline of midday on February 27 to outline a proposal for divesting in MTS.

"Based on the Commission's current position, LSEG believes that the Commission is unlikely to provide clearance for the merger," it added.

The London Stock Exchange did not put an end to the possibility of a tie-up, however, saying it would continue to seek to implement the deal.

Deutsche Boerse, which also operates the Luxembourg-based clearing house Clearstream and the derivatives platform Eurex, confirmed the decision on MTS and said a final decision from Brussels was expected within weeks.   "The parties will await the further assessment by the European Commission and currently expect a decision by the European Commission on the merger of DBAG and LSEG by the end of March 2017," Deutsche Boerse said in a statement.

The planned merger has drawn criticism from France, Belgium, Portugal and the Netherlands,...

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