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London Doubts Not Core to German Ruling on LSE, Minister Says

  • Local of headquarters, regulation ‘must be kept separate’
  • Brexit increases logic of Deutsche Boerse-LSE deal: Minister

The regulator of Frankfurt’s bourse will take its decision on the combination of Deutsche Boerse AG and London Stock Exchange Group Plc on legal grounds and won’t be swayed by the location of the new company’s headquarters, a government minister said.

The U.K.’s decision to leave the European Union has complicated Deutsche Boerse’s takeover of its London-based competitor as lawmakers and regulators voiced concern about basing Europe’s largest exchange operator in the U.K. capital, outside the jurisdiction of the EU. Shareholders of both companies have given their blessing to the deal, which would create a European mega-exchange that can better compete with giants in the U.S. and Asia.