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LSE-Deutsche Boerse merger plan being investigated | |
(35 minutes later) | |
The European Commission is planning to open an in-depth investigation into the planned £21bn merger of London's Stock Exchange and Germany's Deutsche Boerse. | The European Commission is planning to open an in-depth investigation into the planned £21bn merger of London's Stock Exchange and Germany's Deutsche Boerse. |
The scheme would combine the stock exchanges of the UK, Germany and Italy and some big clearing houses to create Europe's largest exchange operator. | The scheme would combine the stock exchanges of the UK, Germany and Italy and some big clearing houses to create Europe's largest exchange operator. |
Commissioner Margrethe Vestager said it had to make sure that financial markets remained "competitive". | Commissioner Margrethe Vestager said it had to make sure that financial markets remained "competitive". |
Shareholders of the LSE and Deutsche Boerse have already approved the plan. | Shareholders of the LSE and Deutsche Boerse have already approved the plan. |
The European Union's anti-trust watchdog says such a merger could eliminate competition in areas such as bonds, derivatives and repurchasing agreements. | The European Union's anti-trust watchdog says such a merger could eliminate competition in areas such as bonds, derivatives and repurchasing agreements. |
The LSE said that to deal with the body's concerns, it would try to dispose of its French subsidiary LCH. | The LSE said that to deal with the body's concerns, it would try to dispose of its French subsidiary LCH. |
Job losses | Job losses |
Each of the companies has more than 5,000 staff and in June, the LSE said that the merger could lead to as many as 1,250 job losses. | Each of the companies has more than 5,000 staff and in June, the LSE said that the merger could lead to as many as 1,250 job losses. |
The deal is expected to produce £215m in annual cost savings over five years, with £138m of those achieved by the third year, while the headquarters in London and Frankfurt would both be kept. | The deal is expected to produce £215m in annual cost savings over five years, with £138m of those achieved by the third year, while the headquarters in London and Frankfurt would both be kept. |
If it goes ahead, LSE shareholders will own 45.6% of the new holding company with the rest being held by Deutsche Boerse shareholders. | If it goes ahead, LSE shareholders will own 45.6% of the new holding company with the rest being held by Deutsche Boerse shareholders. |
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