3/16/2016, 8:32 AM (Source: TeleTrader)
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Deutsche Börse, London Stock Exchange to merge as equals

Deutsche Börse AG and the London Stock Exchange Group Plc (LSEG) have struck a deal to unite as equals in an "industry-defining merger", that would make the two most important exchanges in Europe become one of the global leaders.

"Bringing together London, a leading global financial centre, and Frankfurt, the home of the ECB and access point to Europe's largest economy, in an industry-defining combination," said the press release from Deutsche Börse.

Shares of the London Stock Exchange Group closed at 2,906p at its own trading floor on Tuesday, after gaining 24.19% in the month of speculation if it would accept the offer from Deutsche Börse. The financial institution, based in London, England, has an estimated market cap of nearly £8 billion ($11.2 billion, €10.29 billion).

Deutsche Börse AG has an estimated market capitalisation of nearly €15 billion (£11.65 billion, $16.31 billion). Shares of the Frankfurt am Main, Germany-based corporation closed down 0.33% at €75.75 on Tuesday, as the company's stock endured weeks of speculation if its offer for the LSEG would be successful.

Just two weeks ago, there was a "war of the exchanges", as Deutsche Börse was faced with possible clash with the rival the Intercontinental Exchange Inc., which confirmed it was "considering making an offer" for the LSEG. The details of the offer were not revealed, and the London-Frankfurt merger was announced way ahead of the March 29 deadline given by the German exchange to accept the deal.

This was the third attempt from the Frankfurt and London to join their forces in last 16 years, and this time it was a success. The possibility for the United Kingdom to leave the European Union after a referendum on June 23 could have induced a race for the influence for the stock market with "the best of both worlds" - being close to Europe and at the same time not to be in the European Union.

Breaking the News / ZR