EU to Probe Deutsche Bö rse, London Stock Exchange Merger
September 28 2016 - 10:40AM
Dow Jones News
BRUSSELS—The European Union's antitrust regulator on Wednesday
opened a full-blown investigation into the proposed merger of
Deutsche Bö rse AG and London Stock Exchange Group PLC, citing
concerns the deal would reduce competition in a number of financial
markets.
The European Commission said it was concerned about the deal's
impact in clearing, derivatives, repurchasing agreements, German
stocks and exchange-traded products adding that the merger would
"by far" create the largest European-exchange operator.
"Financial markets provide an essential function for the
European economy. We must ensure that market participants continue
to have access to financial market infrastructure on competitive
terms," EU antitrust chief Margrethe Vestager said.
In-depth merger reviews by the EU are common in large, complex
deals. The commission has until Feb. 13 next year to reach a
decision, though the deadline could be extended.
In response to the commission's announcement, the LSE said it
would try to head off some competition concerns by exploring the
potential sale of LCH SA. It said any sale of the unit would be
subject to the merger with Deutsche Bö rse going ahead.
In a separate statement Deutsche Bö rse said it noted the
review.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
September 28, 2016 10:25 ET (14:25 GMT)
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