LSE-Deutsche Boerse merger thrown into chaos: Reactions from City analysts and Westminster

“However this is not the end of the story and there is still a pressing need for the regulators in the U.K. to look at this responsibly from the perspective of UK Plc.” – Anne Marie Morris, Conservative MP Here’s how the City has reacted:Read more: The inside story of how the LSE’s mega-merger was suddenly derailed whatsapp Emma Haslett Last night’s announcement that the mega-merger between the London Stock Exchange (LSE) and Deutsche Boerse may have been derailed entirely by competition concerns in Europe has left the City reeling.The £21bn merger, which had overcome the potentially devastating hurdle of Brexit without so much as a shrug, was thrown into chaos last night after it emerged regulators were likely to block the deal unless LSE can sell its majority stake in an Italian bond trading platform – a sale which LSE said it “could not commit to”.  1. It may have been blocked anyway “Yes it’s clear the parties to the deals themselves are beginning to look at this deal more carefully to look again at whether it’s in their commercial interests . LSE’s unwillingness to be forced to sell its Italian business is it seems to me symptomatic of a rethink post the Brexit decision. “LSE is trading sharply lower as it becomes clear that the merger with Deutsche Borse is on a knife-edge. LSE is teetering – its shares were trading up around 50 per cent since the merger was first mooted last February. “There is a long, long way to fall if this tie-up dies. The regulatory hurdles were always a risk and with Brexit there are additional hurdles to clear that seem close to insurmountable now.” – Neil Wilson, senior market analyst, ETX Capital by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikecarammelloWhat are the top 10 most expensive cat breeds in the world ? – CarammellocarammelloSurfsharkProtect your digital life with an award-winning VPN, clickSurfsharkBuzzerty8 Signs you may have Rheumatoid ArthritisBuzzertyRelocation Target11 Most Isolated Places At The End Of The EarthRelocation Targettibgez10 Things You Should Know about Lewy Body DementiatibgezYourdailylamaMary Ward Is 106 Now & Here’s What She Looks Like TodayYourdailylamaWelcomEarth10 Best European River Cruises 2014WelcomEarthGadgetheoryLioness Sees Her Old Trainer, This Is Her ReactionGadgetheoryTrendscatchersWoman Had Not Idea How Her Amazon Delivery Went Missing. Then She Decided To Hide A CameraTrendscatchers “Concerns from other EU countries appear to have ended the LSE Deutsche Boerse merger. Escalating requests from countries and particularly France suggest concerns that Frankfurt would be too great a beneficiary from the Brexit fallout. This would be at the expense of France and Paris in particular who would expect to pick up significant trade from Brexit without the merger. “The merger would have subsequently allowed an orderly transfer of some markets towards Frankfurt. This, in turn, meant shareholders and boards of both companies would have an in-built hedge against any Brexit downside. No doubt in time the head office would also have migrated to Frankfurt in substance if not name. The merger would probably not have benefitted London as a financial centre as the merger would have been intent on moving trade to within the EU. “Now the LSE will be fighting to keep trade and markets in London. For Theresa May this is the second major stroke of luck in a week, following the Kraft Heinz withdrawal from the Unilever bid. If the LSE Deutsche Borse merger had progressed Theresa May would have been under some pressure for allowing the facilitation of trade migration to the EU.” – John Colley, professor of practice, Warwick Business School Monday 27 February 2017 11:16 am whatsapp “The new regulatory challenge could be insurmountable. On a side note, there are other important issues that would potentially block the $13 billion deal that LSE and Deutsche Börse are working on for the past year, such as the Britain exiting the EU, the potential divergence the Brexit could generate between Briton and German officials, as well as the loss of competition in the sector.” – Ipek Ozkardeskaya, senior market analyst, London Capital Group LSE-Deutsche Boerse merger thrown into chaos: Reactions from City analysts and Westminster 3. There is a long way to fall 2. This is not the end of the story Share 4. The merger would probably not have benefitted London

Leave a Reply

Your email address will not be published. Required fields are marked *