(new: Two headquarters)
ESCHBORN / LONDON (AFX) – The German stock exchange & lt; DB1.ETR & gt; wants to merge with the London Stock Exchange as the undisputed European champion industries. The two market operators made on Tuesday surprisingly concrete merger talks known. Officially, there should be a merger of equals. However, the shareholders of Deutsche Börse to hold future with 54.4 percent of the new joint venture majority. To the shareholders of the London Stock Exchange (LSE) & lt; LS4C.FSE & gt; & Lt; LSE.ISE & gt; to account for the remaining 45.6 percent. see
Both sides by its own account in the possible merger “a compelling opportunity” to strengthen one another and a leading European supplier to provide for global market infrastructure. Together there were significantly greater growth opportunities and extensive cost benefits. In addition, companies together would again catch the last enteilten competition from the USA and Hong Kong.
EXCHANGE CHEERS
The message was the market price of both companies sharply shoot upward. The papers of Deutsche Börse rose meanwhile by more than 8 percent and finally went with an increase of 3.2 percent from the market. The papers of the LSE submitted initially by about 20 percent and traded at close still good 14.5 percent higher than the previous day. For the market close on Monday, the LSE is rated good 8 billion pounds (10.3 billion euros), the German stock market came to a value of almost 15 billion euros. Together, the two companies would be based on market capitalization the second largest exchange in the world.
The two companies want to form a joint holding company. When it comes to an agreement, the shareholders of the British and the German stock exchange to their shares for shares of the new joint venture exchange. A joint Supervisory Board shall consist of equal numbers of members of the Deutsche Börse and the LSE. In addition, the merged entity is for information the newspaper “Handelsblatt (Wednesday) maintain dual headquarters in London and Eschborn near Frankfurt. The should emphasize the partnership nature. According to British merger rules, the German stock market exactly one month now time to submit an official bid.
sTOCK MARKETS REMAIN ISOLATED
your core business, the companies intend to continue under the existing brands. the share trading in Frankfurt should therefore continue regardless of the run in London. in addition belongs to LSE also the Italian stock exchange in Milan.
Both companies complement each other according to own data well. So the LSE’s equity trading significantly stronger than the German stock market, which mainly scores contrast with its Eurex derivatives exchange. in addition, the German market is the largest settlement house . for listed derivatives LSE again is the global leading clearing house for interest rate swaps -. so bet on changes in interest rates the head of Deutsche Börse, Carsten Kengeter had announced only last week, trying to lead his home in the future in all business areas at the top.
SEVERAL failed attempts
exchange operators are considered beneficiaries of more stringent rules in the financial markets since the financial crisis. Commercial transactions should be strengthened since relocated to publicly available trading venues or at least run through neutral intermediaries.
The German stock market had repeatedly tried unsuccessfully in the past large acquisitions. In the years 2000 and 2005 already failed mergers with the LSE. Four years ago burst a merger with the New York Stock Exchange (NYSE). Europe top competition watchdog had banned in February 2012 the proposed merger of the Frankfurt with the New York Stock Exchange because of antitrust concerns. The German stock market had since oriented differently and their salvation wanted more especially in smaller partnerships in Asia.
NEW MOMENTUM IN THE STOCK MARKET
International but the merger carousel turned on. Thus, the US stock exchange InterContinental Exchange (ICE) took lt; ICE.NYS & gt; & Lt; I5E.FSE & gt; The end of 2012, the New York Stock Exchange NYSE. In the same year the Hong Kong Stock Exchange bought the London Metal Exchange. The world’s largest derivatives exchange, CME in Chicago, again said to have put out feelers years ago already at Deutsche evil, however, have its compliance is a significant removal.
But since the new CEO in early June 2015, the Office of Reto Francioni took over, the stock market returns to attack. In the summer drew Kengeter two acquisitions for a total of 1.3 billion euros durch./enl/zb
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