• Home
  • Contact Us!
  • Privacy Policy

Radio Metta

  • Home
  • Business
  • Education
  • Health
  • Home Deco
  • News
  • Real Estate
  • Technology
  • Contact Us!
  • Privacy Policy
Home» Business»London Stock Exchange and Deutsche Boerse agree merger

London Stock Exchange and Deutsche Boerse agree merger

Saheli 16 Mar 2016 Business Comments Off on London Stock Exchange and Deutsche Boerse agree merger 231 Views

London Stock Exchange sing seen from below

The tie-up will create one of the largest exchange companies in the world with a combined value of about £21bn.

Under the terms of the deal, LSE shareholders will own 45.6% of the new holding company, while Deutsche Boerse shareholders will own 54.4%.

LSE chief executive Xavier Rolet said the two firms were “creating an industry-defining combination”.

The two companies said together they should be able to make cost savings of €450m (£354m) a year, about 20% of the combined group’s operating costs of €2.2bn last year.

The LSE group already owns Milan-based Borsa Italiana.

The two exchanges said the “combination of London, Frankfurt and Milan will provide a platform for financing and promoting economic growth of European companies and be an attractive offering to Asian and US companies looking to access investors and capital”.

Deutsche Boerse

The newly-merged company will keep both the London and Frankfurt headquarters. The new holding company, UK TopCo, will be incorporated in the UK.

The merger is expected to be completed by the end of this year or early next year.

When it goes through, Mr Rolet will step down from his role as LSE chief executive, but will stay on for about a year to advise on the transition.

LSE chairman Donald Brydon will become chairman of UK TopCo and Deutsche Boerse chief executive, Carsten Kengeter, will become chief executive.

The boards of both the LSE and Deutsche Boerse have said they will recommended that their shareholders accept the offer.

However, earlier this month, Intercontinental Exchange (ICE), which owns the New York Stock Exchange, said it was considering making an offer for the LSE. It is not yet known whether it will go ahead with a hostile bid.

Referendum

The LSE and Deutsche Boerse have set up a referendum committee to consider what impact a Leave vote in the EU Referendum might have.

At this stage, though both companies say the outcome of the Referendum is not a condition of the merger because they believe the combined group would be “well positioned to serve global customers irrespective of the outcome of the vote”.

However, they added: “The outcome of that vote might well affect the volume or nature of the business carried out by the Combined Group. ”

About 30% of the new group’s revenue would come from the UK, 15% from Germany, 30% from the rest of Europe, 19% from North America and 6% from the rest of the world, mainly Asia.

The merger would mean the group is “better positioned to compete against large US peers in North America”, as well as boosting its position in China and Asia generally,” said the LSE in its statement.

 

volume or nature of the business carried out by the Combined Group. ”

About 30% of the new group’s revenue would come from the UK, 15% from Germany, 30% from the rest of Europe, 19% from North America and 6% from the rest of the world, mainly Asia.

The merger would mean the group is “better positioned to compete against large US peers in North America”, as well as boosting its position in China and Asia generally,” said the LSE in its statement.

[Source:- BBC News]

agree and Boerse Deutsche Exchange London merger Stock 2016-03-16
Tags agree and Boerse Deutsche Exchange London merger Stock
Facebook Twitter Stumble linkedin Pinterest More

Authors

Posted by : Saheli
Previous Article :

US Federal Reserve holds interest rates

Next Article :

Argentina lawmakers back debt settlement deal

Related Articles

Step up: Tips for organizations from the FTC’s settlement with Genshin Effect designer HoYoverse

Step up: Tips for organizations from the FTC’s settlement with Genshin Effect designer HoYoverse

admin 07 Feb 2025
The main 3 showcasing challenges for independent companies (and how mechanization can tackle them)

The main 3 showcasing challenges for independent companies (and how mechanization can tackle them)

admin 24 Sep 2024
The most effective method to Begin a Blog (and Bring in Cash) in 6 Stages: Simple Fledgling’s Aide

The most effective method to Begin a Blog (and Bring in Cash) in 6 Stages: Simple Fledgling’s Aide

admin 19 Sep 2024

Latest Post

Why some houses sell more quickly than others
Real Estate

Why some houses sell more quickly than others

admin 07 May 2025
Get AI Ready — What IT Leaders Need to Know and Do
Technology

Get AI Ready — What IT Leaders Need to Know and Do

admin 22 Apr 2025
Job Prospects in Real Estate: Is Real Estate a Good Career Path?
Real Estate

Job Prospects in Real Estate: Is Real Estate a Good Career Path?

admin 12 Apr 2025

Creating Spaces: Decor for Every Room in Your Home

admin 05 Apr 2025
Tips for staying safe online and tracking scams
Technology

Tips for staying safe online and tracking scams

admin 01 Apr 2025
Our testimony regarding the California Journalism Preservation Act to the Judiciary Committee of the California Senate
News

Our testimony regarding the California Journalism Preservation Act to the Judiciary Committee of the California Senate

admin 24 Mar 2025
EdTech Hub at CIES 2025
Education

EdTech Hub at CIES 2025

admin 19 Mar 2025
May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Apr    
  • Home
  • Contact Us!
  • Privacy Policy
Copyright 2016, All Rights Reserved
Magazine Blog News WordPress Theme