Arab Today, arab today brexit would scupper london frankfurt stock exchange merger
Last Updated : GMT 10:14:06
Arab Today, arab today
Arab Today, arab today

Deutsche Boerse

'Brexit' would scupper London, Frankfurt stock exchange merger

Arab Today, arab today

Arab Today, arab today 'Brexit' would scupper London, Frankfurt stock exchange merger

A pro-Brexit campaigner smiles at a public meeting by pro-Brexit campaigners central London
Frankfurt - Arab Today

Frankfurt stock exchange operator Deutsche Boerse revealed Friday that in the proposed tie-up with the London Stock Exchange the merged group would be based in the British capital, but a potential 'Brexit' could jeopardise the plans.

Deutsche Boerse's chief executive Carsten Kangeter would assume the role of CEO of the combined company if the tie-up goes ahead, the German company said in a statement outlining the rationale and key points behind the proposed merger.

The latest proposal is the third attempt at merging Europe's two biggest markets, but it comes at a politically sensitive time as Britain is about to hold a referendum on June 23 which would determine whether it remains in the EU.

And both stock exchanges recognised that any vote by Britain to leave the European Union could put the entire merger project at risk.

The London Stock Exchange and Deutsche Boerse had first announced they were in talks on February 23, just three days after British Prime Minister David Cameron secured a deal with the EU for reforms aimed at keeping the UK in the bloc.

Revealing details of the planned tie-up, the German exchange said "the potential merger would be structured as an all-share merger of equals under a new UK holding company".

Under the terms of the deal, Deutsche Boerse shareholders would end up with 54.4 percent of the new holding company's capital, and LSE shareholders with 45.6 percent. Both financial markets would continue doing business under their respective current brand names.

The LSE and Deutsche Boerse "would become intermediate subsidiaries of the combined group. The existing regulatory framework ... would remain unchanged, subject to customary and final regulatory approvals."

The combined group would also be listed on both the London and Frankfurt stock exchanges.

"It is envisaged that the combined group shares would be eligible for inclusion" in the blue-chip stock indices, EuroStoxx, DAX and FTSE.
The combined group would have headquarters in London and Frankfurt, "with an efficient distribution of corporate functions in both locations," the statement continued.

The board of the merged unit would have "equal representation" from both sides.

At completion, LSE chairman Donald Brydon would become chairman of the combined group.

Kengeter, CEO of Deutsche Boerse, would assume the role of CEO and executive director of the combined group while LSE's finance chief David Warren would be chief financial officer.

"On completion of the transaction, Xavier Rolet will step down from his role as CEO of LSE," the statement added.

In addition, a joint committee had been set up to advise on the implications of the outcome of Britain's upcoming referendum on EU membership, Deutsche Boerse said.

But it was "recognised that a decision by the United Kingdom electorate to leave the European Union (a 'Leave Decision') would put the project at risk," the statement said.

- Third tie-up attempt -

The latest project is the third attempt to combine the London and Frankfurt stock exchanges.

In 2000, similar plans were blocked by the LSE's owners. And a second attempt in 2004 -- when then rival Euronext had made a competing bid -- the British hedge fund, The Children's Investment Fund (TCI), also derailed the plans.

For its new proposal, Deutsche Boerse has until March 22 to launch the operation, pending shareholder approval and the green light from regulators.
Deutsche Boerse said that both sides believed that the potential merger would represent "a compelling opportunity for both companies to strengthen each other in an industry-defining combination, creating a leading European-based global markets infrastructure group."

There would be "significant customer benefits" and "substantial" cost and revenue synergies, Deutsche Boerse argued.

In Frankfurt, investors appeared little impressed, however, with Deutsche Boerse shares underperforming the overall market, adding 0.96 percent while the blue-chip DAX index gained 2.3 percent.

By contrast, in London, LSE shares were up 1.52 percent while the overall FTSE was up 1.29 percent.
Source :AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today brexit would scupper london frankfurt stock exchange merger Arab Today, arab today brexit would scupper london frankfurt stock exchange merger

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 12:38 2017 Thursday ,23 February

Lower fares hit Qantas first half profit

GMT 10:57 2017 Thursday ,23 February

Chief executive out at Paramount Pictures

GMT 07:26 2017 Thursday ,23 February

A peek inside Qatar's 'gas capital of the world'

GMT 11:26 2017 Wednesday ,22 February

Dutch corporate takeover defences tough to breach

GMT 11:14 2017 Wednesday ,22 February

Lloyds Banking Group posts surging profits

GMT 10:01 2017 Tuesday ,21 February

Egypt pound rebounds from flotation slide

GMT 09:57 2017 Tuesday ,21 February

Greece agrees to bailout reforms compromise
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday