London Stock Exchange Group Agrees Sale of LCH SA
January 03 2017 - 3:05AM
Dow Jones News
By Ian Walker
LONDON--London Stock Exchange Group PLC (LSE.LN) said Tuesday it
has agreed to sell the French unit of its derivative clearing
business to Euronext NV (ENX), a pan-European exchange operator, as
it attempts to win regulatory approval for its proposed megamerger
with Deutsche Boerse AG (DB1.XE).
The London Stock Exchange is selling LCH SA for 510 million
euros ($534.3 million), to be adjusted for surplus regulatory
capital movement between June 30, 2016 and completion of the
transaction. It announced on Dec. 20 that the company was in talks
with Euronext to sell the unit.
LSE plans to use the money raised for general corporate
purposes.
Deutsche Börse and LSE, which together would have a market value
of about $28 billion, aim to create Europe's largest exchange
operator, betting the deal will create a more formidable competitor
against encroaching U.S. rivals CME Group Inc. and Intercontinental
Exchange Inc., while helping to integrate Europe's capital markets
by improving financial stability and offering companies and other
market participants a deeper pool of funding.
Ben Dummett contributed to this article.
-Write to Ian Walker at
ian.walker@wsj.com<mailto:ian.walker@wsj.com>;
@IanWalk40289749
(END) Dow Jones Newswires
January 03, 2017 02:50 ET (07:50 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
CME (NASDAQ:CME)
Historical Stock Chart
From Mar 2024 to Apr 2024
CME (NASDAQ:CME)
Historical Stock Chart
From Apr 2023 to Apr 2024
