London Stock Exchange (LSE) is in “detailed discussions” about a merger with Deutsche Boerse, it confirmed today.
It made the announcement after media reports about a merger led to “movement in LSE’s share price”.
The potential merger would be structured as an all-share merger of equals under a new holding company, according to the LSE statement.
Based on the exchange ratio proposed, Deutsche Boerse shareholders would hold 54.4% of the combined group’s share capital and LSE shareholders 45.6%.
“The boards,” LSE said, “believe the potential merger would represent a compelling opportunity for both companies to strengthen each other in an industry-defining combination, creating a leading European-based global markets infrastructure group.”
Shares in LSE reportedly rose by more than 17% after the news of merger talks was confirmed, while Deutsche Boerse’s gained some 7%.