London Stock Exchange to vote on Deutsche Boerse merger after EU referendum
18 May 2016
The London Stock Exchange will hold its own vote on whether shareholders approved its tie-up with German rival Deutsche Boerse, after the EU referendum.
Though the exchange had insisted that its £21-billion merger had nothing to do with the outcome of the Brexit vote, it has scheduled its shareholder meeting for July, after the referendum on 23 June.
In July, investors in the German exchange would would also be asked to accept the proposal to swap their shares for new ones in the enlarged company.
Both exchanges "continue to make good progress with the preparation of the relevant documentation for their shareholders in relation to the recommended all-share merger", LSE and Deutsche Boerse said in a joint statement.
The two companies announced plans to combine their businesses in February, making this their third attempt since 2000 to agree to a merger following the deal-making across the stock exchange operators.
With the New York Stock Exchange, owner Intercontinental Exchange (ICE), deciding to not make a rival offer for the London bourse earlier this month, the decks are now clear for the firms to complete the deal.
Carsten Kengeter, chief executive of the German bourse, would become chief executive of the combined business, and Xavier Rolet, his UK equivalent, would step down on the completion of the deal. He would act as an adviser for up to a year.
The London Stock Exchange Group and Deutsche Börse said in a news release today that they ''continue to make good progress with the preparation of the relevant documentation for their shareholders in relation to the recommended all-share merger.''
The completion of the transaction would see Deutsche Börse shareholders own 54.4 per cent of the combined company, while London Stock Exchange Group shareholders would own the remaining 45.6 per cent.
If the proposed merger is approved the combined company would be based in the UK, with headquarters in London and Frankfurt.