Bags, agreement between London and Frankfurt for the merger – The Messenger

Agreement between the Frankfurt Stock Exchange and the London Stock Exchange for a merger of equals. The shareholders of the London Stock Exchange, reports Bloomberg, will have approximately 45.6% of the new group while those of Deutsche Borse approximately 54.4%. The new company will retain its offices in London and Frankfurt and chairman Donald will Bryndon.

“The strengthening of the link between the two major European cities, London and Berlin, and build a network in Europe with Luxembourg, Paris and Milan will strengthen the European capital market “, says the CEO of the Frankfurt Stock Exchange, Carsten Kengeter. “This – he concludes – is the logical evolution of our groups at a time of profound change in this industry.”

The announcement of the agreement comes about three weeks before the start of negotiations European stock to create the giant, whose aggregate market value amounts to about 30.5 billion dollars, and it will join giants like CME Group (the Chicago Stock Exchange leader in futures and options), Intercontinental Exchange ( the group which controls the New York Stock Exchange) and the Hong Kong Exchanges & amp; Clearing. The board of management of Deutsche Boerse and the London Stock Exchange Board of Directors (LSE) “confirm their conviction that the merger represents a great opportunity for both companies to strengthen its position in an integration of industry, creating a leading infrastructure of global markets based in Europe. “

the new group’s board will be composed of an equal number of representatives of the two companies. CEO will be Carsten Kengeter, current CEO of Deutsche Borse, the chairman shall be awarded to Donald Brydon, chairman of the LSE. For the Frankfurt Stock Exchange is the third attempt, after those of 2000 and 2005, to get married with the London price list, which also controls the Italian Stock Exchange. The merger is the largest transaction in company stock market after the purchase, in November of 2013, the Intercontinental Exchange by NYSE-Euronext.

The ‘merger’ will face now the scrutiny of the antitrust authorities and it could be put at risk by only a revival by Intercontinental Exchange, the company that controls the New York Stock Exchange, which, as recently revealed, is considering the launch of a higher bid than that of Frankfurt. The two groups expect the completion of the transaction should take place in the course of 2016 or, at the latest, during the first quarter of 2017. The rate synergies once the integration is complete, are estimated at 450 million Euros to ‘ year.