London Stock Exchange and Deutsche Boerse announce merger plan
The Board of the London Stock Exchange (LSE) and the Management Board of Deutsche Boerse have confirmed today (23 February) that they are in detailed discussions about a potential merger. In an official joint statement, the LSE and Deutsche Boerse said: “The Boards believe 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.”
This is the third time that the LSE and DB have tried to merge.
Connor Campbell, a senior market analyst at www.spreadex.com, sent the following comment to Post&Parcel: “The London Stock Exchange jumped over 10% this Tuesday after reports that it is in talks with Deutsche Boerse (whose advances LSE rebuffed in both 2000 and 2005) were confirmed.
“It will be interesting, however, to see how far these talks go; there are many obstacles in the way of any potential deal, none more so than the rather bitter history between the two companies.
“Yet given how LSE have arguably toyed with the German firm in the past, Deutsche Boerse must be serious about a merger if they are willing to enter the M&A arena with their UK counterpart once again.”
