17.03.2016, 07:19
Deutsche Borse AG and London Stock Exchange Group plc agree to industry-defining merger
OREANDA-NEWS. Deutsche Börse AG (XETRA: DB1) and London Stock Exchange Group (LSE:LSE) are pleased to announce that they have reached agreement on the terms of a recommended all-share merger of equals (the “Merger”). Under this industrydefining combination, the companies will merge to create a leading Europe-based global markets infrastructure group, resulting in a significantly enhanced product offering for customers and in leading positions across multiple asset classes (derivatives, equities, fixed income, FX and energy products). The newly formed combined group (the “Combined Group”) will have the ability to serve global customers across the investment, trading and risk and balance sheet management life cycle. The Merger will deliver a platform of choice for risk and balance sheet management, increasing safety, resiliency and transparency in global markets.
Carsten Kengeter, Chief Executive Officer of Deutsche Börse, said: “Strengthening the link between the two leading financial cities of Europe, Frankfurt and London, and building a network across Europe with Luxemburg, Paris and Milan will strengthen European capital markets. It is the logical evolution for our companies in a fundamentally changing industry. As a combined group we will create a European player that will compete on a global basis. Shareholders will have an opportunity to benefit from this industry defining and value enhancing combination through the execution of an accelerated growth strategy and the realisation of cost and revenue synergies. It brings together two of the most respected and successful market infrastructure providers in the world to lead the way in European capital markets and set the benchmark for further growth and best-in-class services.”
Xavier Rolet, Chief Executive Officer of LSEG, said: “We are creating an industrydefining combination which will be a leading global market infrastructure business, very well positioned to create new benefits and efficiencies for our customers and increase value for our shareholders. Our highly complementary businesses will accelerate growth. Our shareholders will also benefit from substantial cost and revenue synergies. The Combined Group will continue to be fully committed to the real economy, by supporting companies, including the 23 million SMEs across Europe that drive economic growth and job creation. We will create a European leader in global markets infrastructure.”
Addressing changing global customer needs in an evolving regulatory landscape
The Combined Group will be a compelling partner for sell-side customers, helping to manage their costs and capital and regulatory requirements. It will be well-positioned to meet non-discriminatory open access provisions, across all relevant businesses, in forthcoming European regulation (MiFID II / MiFIR), as well as to respond to rapidly changing fixed income markets trading requirements across dealers and clients with risk management at its heart. Issuers will be provided access to a larger liquidity pool and investor base, creating an ecosystem for financing companies at all stages of their development, and helping to make the vision of the Capital Markets Union in Europe a reality. The Buy-side will benefit from global indexing solutions and continued product innovation through FTSE Russell and STOXX. This will help to meet the needs of customers for a global offering across capital markets through the strength of a diversified European platform with a strong presence in the US and Asia, including China.
Creating a leading venue for capital formation and facilitating economic growth
The Combined Group will provide a platform for financing and promoting economic growth of European companies and will be an attractive offering to Asian and US companies looking to access investors and capital. In addition, by connecting Frankfurt, London and Milan secondary cash markets, a liquidity bridge will be established, providing customers with access to more securities, a broader range of services and a combined offering for pre-IPO markets, utilising LSEG’s and DBAG’s expertise in this area.
The Combined Group will support SME’s through building on, for example, AIM (the world’s largest market for growth companies), ORB (an order-driven trading service for retail bonds), as well as SME support programmes such as Deutsche Börse 4 Venture Network and LSEG’s ELITE and publications such as “1000 Companies to Inspire Britain.”
Furthermore, in fixed income markets, government and corporate issuers will benefit from the combination of MTS, MOT, ORB and Eurex Bonds, offering systemically important financing services to banks through their repo offerings with links to clearing and settlement.
Carsten Kengeter, Chief Executive Officer of Deutsche Börse, said: “Strengthening the link between the two leading financial cities of Europe, Frankfurt and London, and building a network across Europe with Luxemburg, Paris and Milan will strengthen European capital markets. It is the logical evolution for our companies in a fundamentally changing industry. As a combined group we will create a European player that will compete on a global basis. Shareholders will have an opportunity to benefit from this industry defining and value enhancing combination through the execution of an accelerated growth strategy and the realisation of cost and revenue synergies. It brings together two of the most respected and successful market infrastructure providers in the world to lead the way in European capital markets and set the benchmark for further growth and best-in-class services.”
Xavier Rolet, Chief Executive Officer of LSEG, said: “We are creating an industrydefining combination which will be a leading global market infrastructure business, very well positioned to create new benefits and efficiencies for our customers and increase value for our shareholders. Our highly complementary businesses will accelerate growth. Our shareholders will also benefit from substantial cost and revenue synergies. The Combined Group will continue to be fully committed to the real economy, by supporting companies, including the 23 million SMEs across Europe that drive economic growth and job creation. We will create a European leader in global markets infrastructure.”
Addressing changing global customer needs in an evolving regulatory landscape
The Combined Group will be a compelling partner for sell-side customers, helping to manage their costs and capital and regulatory requirements. It will be well-positioned to meet non-discriminatory open access provisions, across all relevant businesses, in forthcoming European regulation (MiFID II / MiFIR), as well as to respond to rapidly changing fixed income markets trading requirements across dealers and clients with risk management at its heart. Issuers will be provided access to a larger liquidity pool and investor base, creating an ecosystem for financing companies at all stages of their development, and helping to make the vision of the Capital Markets Union in Europe a reality. The Buy-side will benefit from global indexing solutions and continued product innovation through FTSE Russell and STOXX. This will help to meet the needs of customers for a global offering across capital markets through the strength of a diversified European platform with a strong presence in the US and Asia, including China.
Creating a leading venue for capital formation and facilitating economic growth
The Combined Group will provide a platform for financing and promoting economic growth of European companies and will be an attractive offering to Asian and US companies looking to access investors and capital. In addition, by connecting Frankfurt, London and Milan secondary cash markets, a liquidity bridge will be established, providing customers with access to more securities, a broader range of services and a combined offering for pre-IPO markets, utilising LSEG’s and DBAG’s expertise in this area.
The Combined Group will support SME’s through building on, for example, AIM (the world’s largest market for growth companies), ORB (an order-driven trading service for retail bonds), as well as SME support programmes such as Deutsche Börse 4 Venture Network and LSEG’s ELITE and publications such as “1000 Companies to Inspire Britain.”
Furthermore, in fixed income markets, government and corporate issuers will benefit from the combination of MTS, MOT, ORB and Eurex Bonds, offering systemically important financing services to banks through their repo offerings with links to clearing and settlement.
Комментарии