FRANKFURT (Reuters) – Deutsche Boerse AG and London Stock Exchange Group plc (LSEG) said they had reached a merger agreement and hoped that the new entity would save the costs year by EUR 450 million ($ 499 million) .
” the combination will offer a significant potential for creating value, “said Deutsche Boerse said in a statement on Wednesday.
The current president of LSEG, Donald Brydon will chair the new company while the head of Deutsche Boerse, Carsten Kengeter, would be the CEO, both stock traders said.
The council seats of the new entity would be shared equally, with equal number of representatives to LSEG and Deutsche Boerse.
The new company will be domiciled in the UK and will have its primary listing on the FTSE 100 index of leading British values in London but also listed on the Frankfurt stock exchange and will have offices in both cities.
Almost 16 years after his first attempt at fusion, bags London and Frankfurt confirmed last month that held merger talks in shares.
The agreement will integrate the operations of equity LSEG with trading Deutsche Boerse derivatives (Eurex) in a group valued at 30,000 million dollars.
The agreement, however, could still provoke a bidding war after the owner of the New York stock Exchange, Intercontinental Exchange, say studying a bid for the British group.
LSEG, created in 2007 after the merger of the London stock market operator Borsa Italiana the Milan stock exchange, said its shareholders receive a dividend of 25.2 pence per share for the semester ended 31 December.
($ 1 = 0.9016 euros)
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