Frankfurt Stock Exchange merged with LSE: Headquartered in London barely conceivable – n-tv.de NEWS

 Economy
 

 Monday 04 July 2016

 
 
 

 
 The withdrawal from the EU Britain torpedoed the merger plans of the stock exchanges in Frankfurt and London. To the union will continue fighting. The plan to locate the headquarters in London, on the other hand seems to have died.
 

 
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“God Wanted” and just the thing for the global economy – downright pathetic promotes German-Börse CEO Carsten Kengeter since late February publicly for the merger of the Dax Group with the London Stock Exchange (LSE). But the No of the British to the European Union could make the people of Frankfurt and at the third attempt a spanner in the works. The chorus of critics grows louder by the Proposed referendum on United Kingdom membership of the European Union recommendation. As one of the lowest hurdles applies currently coordinating the LSE’s shareholders at a special meeting.

“It is hard to imagine that the most important stock exchange is controlled in the euro area from a location outside the EU,” said the President of the Financial BaFin, Felix Hufeld. “Since you will need to safely readjust.” Hufelds word has weight, even if the BaFin in the case does not have formal veto. “A headquarters outside the euro area so far has been difficult to justify outside the EU, I think a common European market for unemployable” says Credit Unions Association chief Georg Fahrenschon and speaks many Frankfurt financial center from the heart. The works council of Deutsche Börse opposed also. “The headquarters has to Frankfurt,” says the Chairman of the Panel, Jutta Stuhlfauth. Given the well forthcoming EU egress Britain it would be from the perspective of the employee representatives “paradoxical if the head office would relocated to London”.

Skeptical is also the Hessian Exchange Commission that could ultimately play tip the scales , Because they must focus on the proper operation of the Frankfurt Stock Exchange. Soon after the announcement of the merger plans to Prime Minister of Hesse Volker Bouffier had expressed skepticism: It must be clarified, “whether the country can meet its supervisory duties, when the seat of the holding company in the UK to be this raises questions..” Economy Minister Tarek Al-Wazir said suggestively, the Proposed referendum on United Kingdom membership of the European Union-vote will play a role in the testing of his ministry – “and of course we will wait and remain whether plans exist in this form”

Officially shaking. corporations not previously on their agreements. But even with the German stock exchange is becoming increasingly apparent that it would be politically difficult to implement at an EU exit Britain to make London the center of European Super Market. The British capital is no longer conceivable as the legal headquarters of the merged company, insiders say. Now, the policy should move in London and give up its claim to the headquarters. Otherwise the deal is dead.

It is “now more important than before the financial connection to keep the UK stable”, had German Börse supervisory board chief Joachim Faber after Proposed referendum on United Kingdom membership of the European Union-vote explain. “The Frankfurt financial center should it take the lead and ensure the connection between Europe’s largest economy with London as the largest financial center in the world.” Already in early May had Faber said in an interview that it was “firmly agreed” between the partners that the Proposed referendum on United Kingdom membership of the European Union-case again everything would roofed – “including the question of where the company is best settled”. London as the seat of the holding is “clear policy guideline of the Cameron government” was a. “Otherwise, the British would have it, do not let in.”

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Prime Minister David Cameron has announced his resignation in October after the defeat in the vote. The political future of the second largest economy in Europe is currently completely open. A departure from the previous plans, however, does not necessarily mean that Frankfurt automatically wins the race. Conceivable is also a seat in a different European city, according to market circles. As a compromise about Amsterdam could come into play. Kengeter and his LSE counterpart Xavier Rolet running out of time. To set up the new complex merger process, would be a feat – and what will happen to the current shareholder vote? The owner of Deutsche Börse are urged to exchange up to and including July 12, their shares in securities of the new company. “The management of Deutsche Börse should again question their recent merger plans critically and adapt massively or completely buried,” demanded the Vice President of the German protection combination for security possession, Klaus Nieding.

After the crash of the British pound and the fall in share price as a result of the Proposed referendum on United Kingdom membership of the European Union decision-lost significant value the LSE. Therefore, among the shareholders of Deutsche Börse’s about the fear take over its competitor too expensive. Again, there are the managers already considerations to dispel these worries: you could offer a special dividend the German stock exchange shareholders. No longer can be shaken from a legal perspective on the future power structure of the proposed group. The German stock market should hold good 54 per cent. The legal headquarters being able to oppose the planned Super Market embarrassed even after completion of the merger still, it was in negotiation circles. Authorities may approve the merger on the condition that the seat must be in the EU.

  Source: n-tv.de
 

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