Deutsche Boerse, London Stock Exchange agree to go ahead with planned merger

Deutsche Boerse has agreed with the London Stock Exchange to go ahead with their planned merger.
Deutsche Boerse has agreed with the London Stock Exchange to go ahead with their planned merger.PHOTO: REUTERS

FRANKFURT (AFP) - Frankfurt stock exchange operator Deutsche Boerse said Wednesday it has agreed with the London Stock Exchange to go ahead with their planned merger to create a pan-European trading titan.

The highly anticipated deal includes the key terms put forward so far during talks between the two operators.

"Following approval of the supervisory board of Deutsche Boerse, the management board of Deutsche Boerse today concluded an agreement on the implementation of a business combination with (the London Stock Exchange Group) LSEG under a UK holding company," the German company said in a statement.

"Moreover, the management board and the supervisory board of Deutsche Boerse consented to certain measures serving the implementation of the merger," it added.

The announcement comes as US-based global markets operator Intercontinental Exchange (ICE), which owns the New York Stock Exchange, is also mulling a rival bid for the LSE.

As already proposed at the end of February, Deutsche Boerse said that the combined group would be managed by a "unitary board of the UK holding company composed of equal numbers of LSEG and Deutsche Boerse directors."

LSE chairman Donald Brydon will be chairman of the combined group and Deutsche Boerse chief executive Carsten Kengeter will assume the role of CEO and executive director after the tie-up. LSE's finance chief David Warren would be chief financial officer.

The combined group will "maintain its headquarters in London and Frankfurt, with an efficient distribution of central corporate functions in both locations", it added.

The latest project is the third attempt to combine the London and Frankfurt stock exchanges.

In 2000, similar plans were blocked by the LSE's owners. And a second attempt in 2004 - when then rival Euronext had made a competing bid - the British hedge fund, The Children's Investment Fund (TCI), also derailed the plans.