In a proposed merger of equals, stock exchange giants Deutsche Boerse AG and LSE have agreed on a deal that would see Deutsche Boerse acquire rival LSE. Post the merger, LSE-Deutsche Boerse would be the world's biggest exchange operator by revenue and second-largest by market value. The merger is subject to scrutiny/approval over competition concerns by the European Commission.
Deutsche Boerse stockholders will get 54.4 percent of the enlarged group in the all-share agreement, and Deutsche Boerse Chief Executive Officer CarstenKengeter will run the enlarged business. The board will be equally split between directors from LSE and Deutsche Boerse. The deal, would create a strong global competitor to Intercontinental Exchanges (ICE Group), the CME Group Inc. of the USA and Hong Kong Exchanges & Clearing Ltd.
The new exchange operator will have a position of strength in Europe from which to expand into both Asia and the U.S. It will be a powerhouse for clearing listed derivatives in Europe and over-the-counter contracts. The Euro Stoxx 50 Index, the FTSE 100 Index and the DAX Index will all be under one roof.
(Source: http://www.bloomberg.com/news/articles/2016-03-16/lse-agrees-to-merge-with-german-rival-to-create-european-titan )
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