Deals
Brexit Vote Threatens Deutsche Boerse Plan to Take Over LSE
- LSE equity holders to own 45.8% of the enlarged company
- London exchange’s shareholders to vote on the deal on July 4
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Britain’s decision to leave the European Union may threaten the planned merger between Deutsche Boerse AG and London Stock Exchange Group Plc. Shares in both companies tumbled.
The 8.6 percent plunge in the U.K. exchange’s shares on Friday could make the existing terms of the all-stock tie-up untenable, said Ben Kelly, an analyst at Louis Capital Markets. The transaction is among the biggest deals between European companies right now, and is faced with other uncertainties including mounting criticism in Germany about the combined company’s proposed headquarters in London. Potential rival suitors may now also be less likely to make a bid for LSE.