News & Gossips
Image default
Business

London Stock Exchange’s £20bn merger with Refinitiv delayed to 2021

The London Stock Exchange has admitted that its long-anticipated deal with Refinitiv will be delayed into the new year.

It had hoped to complete the £20billion merger this year, as soon as it got the green light from European competition regulators.

But in a third-quarter update, the LSE said it was now expecting approvals to be delayed until the first quarter of next year.

Delayed: The London Stock Exchange had hoped to complete its £20bn merger with Refinitiv this year, as soon as it got the green light from European competition regulators

Delayed: The London Stock Exchange had hoped to complete its £20bn merger with Refinitiv this year, as soon as it got the green light from European competition regulators

Delayed: The London Stock Exchange had hoped to complete its £20bn merger with Refinitiv this year, as soon as it got the green light from European competition regulators

It comes just weeks after the LSE agreed to sell Italian stock exchange, Borsa Italiana, to its rival Euronext for £3.9billion, to appease regulators at the European Commission. 

They are worried that a merger of the LSE and Refinitiv will reduce competition and push up prices of the critical data used by global markets.

LSE chief executive David Schwimmer said: ‘We continue to engage constructively with the European Commission and believe the potential divestment of the Borsa Italiana group will contribute significantly to addressing the EU’s competition concerns.’

LSE reported strong numbers for the third quarter. Income rose 2 per cent to £600million, and so far this year is up 6 per cent to £1.8billion.

It has benefited from market volatility as the pandemic has boosted trading activity.

Russell Quelch, an analyst at Redburn, said: ‘LSE has some large client contracts up for renewal before the year-end and it will be important that it is able to continue to show underlying business can grow revenues in advance of the Refinitiv transaction.’

The acquisition of Refinitiv would boost LSE’s position as one of the world’s most influential financial institutions, expanding its reach into data provision. 

Shares in LSE slipped 0.9 per cent, or 78p, to 8438p.

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

Source:Daily Mail | BBC News & Gossip

Related posts

Active COVID-19 cases below 8 lakh for 2nd day in row; recovery rate 88.03%

BBC News & Gossip

Is it the right time to invest in stocks of banks, NBFCs?

BBC News & Gossip

UK house prices rise at fastest rate since 2016, says Nationwide

BBC News & Gossip

Leave a Comment