London Stock Exchange agrees deal for LCH.Clearnet
LSEG, which operates the London Stock Exchange and Italy's Borsa, said it could acquire up to a further 55.5 per cent in LCH.Clearnet, adding to its current 2.3 per cent interest.
LSEG would meanwhile offer 15 euros (USD 19.55) a share,
down from an original offer of 20 euros that had been agreed a year ago.
The terms of the deal had been outlined by LSEG at the end
of January and were determined after long negotiations between the pair that had been triggered by regulatory changes in Europe.
"Together, we see significant revenue opportunities
opening up as a result of both customer and regulatory demand for more efficient and more sophisticated tools to manage market risk," LCH.Clearnet chief executive Ian Axe said of the agreement.
LSEG chairman Chris Gibson-Smith added: "This is a
compelling transaction and we are delighted to be partnering
with LCH.Clearnet as global leaders in market infrastructure.
"Experience, stability and trust are cornerstones of our
industry and together, we have secured the enlarged group's long-term role in the operation of international capital markets."
The lower price reflects the higher costs that LSEG would
likely face as a result of new regulations increasing the
financial buffer that clearing houses must set aside to cover
risks of default.
Clearing houses play a key role in the transaction of
shares between two parties,
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