Frankfurt and London seal $30 billion trading tie-up to counter U.S. threat
Source: Reuters
Deutsche Boerse AG (DB1Gn.DE) and London Stock Exchange Group Plc (LSE) (LSE.L) agreed to combine in a $30 billion deal to create a European trading powerhouse better able to compete with U.S. rivals encroaching on their turf.
But the deal, which marks a third attempt to link the Frankfurt and London exchanges, may prompt a takeover war after New York Stock Exchange owner Intercontinental Exchange (ICE.N) said it may bid for the British group.
Nearly 16 years after Deutsche Boerse first tried to take over LSE, the exchanges said last month they were discussing an all-share merger, which they confirmed on Wednesday would give Deutsche Boerse shareholders 54.4 percent and LSE investors 45.6 percent of a new company.
This offers a unique opportunity for Frankfurt which has always played second fiddle to London as a global financial center, something recognized by the German government which said it would welcome the deal if it strengthened Frankfurt.
Read more: http://www.reuters.com/article/us-deutsche-boerse-lse-idUSKCN0WI0SF
