Brexit could threaten LSE鈥揇eutsche B枚rse merger
26 February 2016 London
Image: Shutterstock
The potential merger of the London Stock Exchange (LSE) and German exchange operator Deutsche B枚rse 鈥渨ould be put at risk鈥� if the UK decides to leave the EU.
Current merger plans see the combined entity being domiciled in London with secondary offices in Frankfurt, where Deutche B枚rse is headquartered.
鈥淭he parties are proceeding on the basis that existing regulatory and political structures remain in place,鈥� said Deutsche B枚rse in a briefing outlining the plans behind the merger.
Although an 鈥榠n鈥� vote from the Brexit referendum (set for 23 June) is not a strict condition of the merger, an 鈥榦ut鈥� decision 鈥渕ight well affect the volume or nature of the business conducted in the different financial centres,鈥� Deutche B枚rse explained.
The merger, first announced on 23 February, would reportedly be structured as an 鈥榓ll-share merger of equals鈥�, creating a new holding company.
It is expected that Deutsche B枚rse shareholders would hold 54.4 percent of the new company, and LSE holders would retain the rest.
The new company would have a board composed of equal numbers of LSE and Deutsche B枚rse directors.
Deutsche B枚rse鈥檚 CEO Carsten Kengeter would lead the joint entity, with LSE CEO Xavier Rolet stepping down.
Donald Brydon, currently LSE chairman, and David Warren, LSE CFO and executive director, would both retain the same positions overseeing the new structure.
Deutsche B枚rse鈥檚 chairman Joachim Faber would work under Brydon as deputy chairman and senior independent director.
All key businesses of both parties would continue to operate under their current names, and the regulatory frameworks of all regulated entities within both groups would remain unchanged.
Deutsche B枚rse also recently completed the sale of its share of financial information provider subsidiary Infobolsa to Spanish stock exchange, BME.
BME has paid Deutsche B枚rse 鈧�8.2 million in cash for its 50 percent stake in company, making BME the full owner of the entity, effective immediately.
The sale also includes the acquisition of Infobolsa鈥檚 wholly-owned subsidiaries Difubolsa 鈥� Servi莽os de Difus茫o e Informa莽茫o de Bolsa and Infobolsa Deutschland GmbH.
Current merger plans see the combined entity being domiciled in London with secondary offices in Frankfurt, where Deutche B枚rse is headquartered.
鈥淭he parties are proceeding on the basis that existing regulatory and political structures remain in place,鈥� said Deutsche B枚rse in a briefing outlining the plans behind the merger.
Although an 鈥榠n鈥� vote from the Brexit referendum (set for 23 June) is not a strict condition of the merger, an 鈥榦ut鈥� decision 鈥渕ight well affect the volume or nature of the business conducted in the different financial centres,鈥� Deutche B枚rse explained.
The merger, first announced on 23 February, would reportedly be structured as an 鈥榓ll-share merger of equals鈥�, creating a new holding company.
It is expected that Deutsche B枚rse shareholders would hold 54.4 percent of the new company, and LSE holders would retain the rest.
The new company would have a board composed of equal numbers of LSE and Deutsche B枚rse directors.
Deutsche B枚rse鈥檚 CEO Carsten Kengeter would lead the joint entity, with LSE CEO Xavier Rolet stepping down.
Donald Brydon, currently LSE chairman, and David Warren, LSE CFO and executive director, would both retain the same positions overseeing the new structure.
Deutsche B枚rse鈥檚 chairman Joachim Faber would work under Brydon as deputy chairman and senior independent director.
All key businesses of both parties would continue to operate under their current names, and the regulatory frameworks of all regulated entities within both groups would remain unchanged.
Deutsche B枚rse also recently completed the sale of its share of financial information provider subsidiary Infobolsa to Spanish stock exchange, BME.
BME has paid Deutsche B枚rse 鈧�8.2 million in cash for its 50 percent stake in company, making BME the full owner of the entity, effective immediately.
The sale also includes the acquisition of Infobolsa鈥檚 wholly-owned subsidiaries Difubolsa 鈥� Servi莽os de Difus茫o e Informa莽茫o de Bolsa and Infobolsa Deutschland GmbH.
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