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Deutsche Bourse, LSE to Merge

Deutsche Bourse, LSE to MergeDeutsche Bourse, LSE to Merge

Deutsche Bourse AG and London Stock Exchange Group Plc agreed to merge, a deal that would create a titan of European trading as long as rival suitors don’t upend the agreement and regulators give it their blessing, Bloomberg reported.

LSE’s equity holders will own 45.6% of the enlarged group, while Deutsche Bourse stockholders will get the remaining 54.4%, according to a statement on Wednesday.

The two companies announced on Feb. 23 that they were negotiating a deal. The companies are valued at $30.5 billion. The companies predicted they would have cost savings, or synergies, of €450 million ($499 million) each year after the deal is completed.

Companies typically have to spend double their forecast annual savings from synergies in the first year or two of the deal. That means they have to come up with cash to save money later on.

 

Financialtribune.com