The London Stock Exchange and Deutsche Börse Germany have reached a formal agreement for their merger “of equals” that will create a global group. The measure offered the opportunity to “create a leader for the global market infrastructure European offeror” said council German administration.
In a statement, the London Stock Exchange (LSE) indicates that it is a structured action agreement so that the LSE shareholders will receive 45.6% of the shares of the combined group, while German investors will receive 54.4%.
the two parts, which provide supports for stock trading, had already announced last month they were in merger talks, but in recent days there was speculation about a possible interest of the New York Stock Exchange to introduce a rival bid for the LSE .
Two locations
under the merger plans, the two sides will retain their offices in London and Frankfurt (Germany), but also trade in . the trading floors of these two European cities
the two bags indicated that this merger will bring together two major cities: London, as one of the leading financial centers in the world, and Frankfurt, headquarters of the European Central Bank (ECB), with access to the largest economy in Europe.
“It’s the logical evolution of our companies in an industry fundamentally change,” said the CEO of the Deutsche Börse. The group will have a unitary board composed of an equal number of representatives from both companies.
Heads
The president of LSE, Donald Brydon, will be chairman of the combined business, while the chairman of the supervisory board of Deutsche Börse, Joachim Faber, will be the vice president.
the union of the LSE, founded in 1801, and Deutsche Börse, created in 1992, must be approved by the European authorities for antitrust and shareholders of both companies.
the two companies expect their merger would reduce costs by 450 million euros (500 million dollars) a year.
ER (dpa, efe)
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