Deutsche Börse AG and London Stock Exchange Group plc agree to "merger of equals"

Deutsche Börse AG and London Stock Exchange Group plc agree to industry-defining merger

  • Highly complementary combination across divisions and asset classes which accelerates LSEG and DBAG’s respective growth strategies and results in a significantly enhanced product offering for customers.
  • Through its enhanced position in the global market infrastructure sector, well placed to adapt to industry and regulatory dynamics, able to compete globally, and create shareholder value based on a track record of execution and deep understanding of customers’ needs.
  • Leading positions across multi-asset classes (derivatives, equities, fixed income, FX and energy products) and ability to service global customers across the investment, trading and risk and balance sheet management life cycle.
  • Delivered through an attractive portfolio of leading businesses in capital markets, post-trade, index and information services and technology with diversified revenues across divisions.
  • Bringing together London, a leading global financial centre, and Frankfurt, the home of the ECB and access point to Europe’s largest economy, in an industry-defining combination.
  • Enhances a global footprint, strengthening the Combined Group’s reach and distribution.
  • The newly formed holding company (UK TopCo) has been incorporated in the UK and has a unitary board with equal representation from LSEG and DBAG.
  • LSEG plc will maintain a one-tier-board system, while DBAG will maintain a two-tier board system subject to applicable co-determination rules.
  • The Combined Group will have a balanced governance structure and maintain its headquarters in Frankfurt and London.
  • The existing regulatory framework of all regulated entities within the Combined Group will remain unchanged, subject to customary and final regulatory approvals.
  • LSEG and DBAG will continue to be subject to tax in their respective countries of incorporation.
  • Delivering significant value creation through cost synergies of €450 million per annum, achieved in year three post completion, and significant opportunities for revenue synergies.

The full press release is available at http://deutsche-boerse.com/INTERNET/MR/mr_presse.nsf/0/421CE5E760066BFCC1257F780026C5EE/$File/1603%20Press%20Release%20%28EN%29.pdf?OpenElement

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