A 15-year-old merger between the London Stock Exchange and Deutsche Boerse is back on
The deal, first proposed in May 2001 but since abandoned, is at an advanced stage and the two groups are "in detailed discussions about a potential merger of equals of the two businesses," according to an LSE statement on Tuesday.
"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."
"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 company said on Tuesday.
The potential deal also marks another success for M&A specialists over the big banks, with nine-person boutique Robey Warshaw scooping the lead role advising the LSE and Perella Weinburg Partners advising Deutsche Boerse.
A merger between the companies almost happened in 2001, but was scuppered by a bid from Sweden's OM for LSE. Deutsche Boerse tried again in 2004 but abandoned the bid in 2005.
Robey has had a stellar 12 months and is advising on a series of multi-billion pound mergers, including the tie-up between SAB Miller and Anheuser Busch Inbev.
LSE shares went ballistic on the news, up more than 18%:
Investing
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Vodafone Idea FPO allotment – How to check allotment, GMP and more
- 9 Most beautiful waterfalls to visit in India in 2024
- Reliance, JSW Neo Energy and 5 others bid for govt incentives to set up battery manufacturing units
- Rupee rises 3 paise to close at 83.33 against US dollar
- Supreme Court expands Patanjali misleading ads hearing to include FMCG companies
- Reliance Industries wins govt nod for additional investment to raise KG-D6 gas output