London Stock Exchange and Deutsche B�rse Merger Blocked by EU

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Phasing in the acquisition of Deutsche Boerse would have increased London Stock Exchange’s yearly revenue and market cap. However, today, the merger was blocked by the EU on the basis that it would result in a monopoly for European trading. The merger would have been worth $2 billion and created a company with £50 million every single day in turnover. 

The EU is trying to comply with all of these aggressive competition standards or be held accountable for failing to do so.

If both exchanges had merged, the LSE would have had more than 70 percent of trading fees in Europe and about 30 percent on all global market trading. 

Furthermore, this deal may revamp how other major companies approach mergers and acquisitions with tax concerns.

Phasing in the acquisition of Deutsche Boerse would have increased London Stock Exchange’s yearly revenue and market cap. However, today, the merger was blocked by the EU on the basis that it would result in a monopoly for European trading. 

The merger would have been worth $2 billion and created a company with £50 million every single day in turnover. The EU is trying to comply with all of these aggressive competition standards or be held accountable for failing to do so.

If both exchanges had merged, the LSE would have had more than 70 percent of trading fees in Europe and about 30 percent on all global market trading. Furthermore, this deal may revamp how other major companies approach mergers and acquisitions with tax concerns.

Sophie Christie (07/26/17) “EU blocks London Stock Exchange-Deutsche Boerse merger”

On September 12th, the European Union’s Competition Commissioner charged Deutsche Boerse with providing false information in regards to their planned merger with the London Stock Exchange. The commissioner urged for a full investigation of the merger and requested a detailed report of their findings by December 12th. 

This prevented any implementation of the agreement until this time. There is concern that the EU will not be able to make its decision in time for the proposed merger on the October 5th deadline. The EU is trying to stop China from dominating financial markets, but what effect will this have on them?”

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