Tallahassee Journal

LSE and Deutsche Boerse in merger talks

LSE and Deutsche Boerse in merger talks

The London Stock Exchange on Tuesday confirmed it was in discussions to merge with Germany’s Deutsche Boerse. The LSE said in a statement that the two firms are “in detailed discussions about a potential merger of equals of the two businesses.”

It said it anticipates that Deutsche Boerse shareholders will hold 54.4% of the combined group while LSE shareholders would hold 45.6%. “The combination of LSE and Deutsche Boerse’s complementary growth strategies, products, services and geographic footprint would be expected to deliver an enhanced ability to provide a full service offering to customers on a global basis,” the statement said.

Exchanges are largely looking to mergers and expansion as a way to stay relevant in a rapidly globalizing securities marketplace. Size and scale are important as global traders look for markets that have adequate trading activity and availability of a variety of securities. Intercontinental Exchange (ICE), for instance, has been aggressively buying other exchanges and market places including NYSE Euronext for $10.8 billion in 2013.

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