Frankfurt, London stock exchanges to tie knot in July
By AFP | May 18th 2016
Deutsche Boerse and LSE, the operators of the Frankfurt and London stock exchanges, said Wednesday they intend to seal their planned merger to create a new global player in July.
In a brief joint statement, the companies outlined the timetable for the next stages in the tie-up.
The detailed shareholder documents will be published in June; LSE shareholders will vote on the plans at a meeting in July; and Deutsche Boerse's offer to LSE shareholders will expire in July, the statement said.
The tie-up, which both sides describe as a "merger of equals", will create one of the world's biggest stock exchanges.
Under the agreed terms, Deutsche Boerse shareholders will end up with 54.4 percent of the new holding company's capital, and LSE shareholders with 45.6 percent.
The LSE and Deutsche Boerse are to become intermediate subsidiaries of the combined group, which will have headquarters in both London and Frankfurt and the board would have "equal representation" from both sides.
It will be headed by Deutsche Boerse chief Carsten Kengeter.
The deal has still to be approved by the EU, with some observers suggesting that the individual strengths of both companies in some derivatives could pose a problem.
Another potential obstacle -- a possible rival bid from another player -- appears to have disappeared when US global markets operator Intercontinental Exchange (ICE) announced earlier this month that it had decided not to make an offer for LSE.
The Frankfurt and London operators insist the tie-up will succeed irrespective of the outcome of the Brexit vote on Britain's future in the EU next month.
UK firm finalises acquisition of Kenyan insurer
- Bank profits surge to Sh60b in 4 months on economic rebound
- Firms to snub Kenya for not reducing emissions
- Tourist numbers edge up after record 2020 slump
- When boots and batons were met with twangs, cards and stethoscopes
By Peter Kimani
- Regent to manage Pangani low-cost housing project
By Peter Theuri