LSE confirms talks on $27bn Refinitiv deal

London Stock Exchange Group confirmed on Monday it was in talks to buy financial data and trading platform provider Refinitiv in a deal that could be valued at $27bn.

A Blackstone Group-led consortium bought a majority 55% stake in Refinitiv from information publisher Thomson Reuters last year in a deal last year that valued the business at $20bn.

The exchange said it would issue shares as part of the transaction with Refinitiv holders potentially getting a stake of 37%, LSE said in a statement. Thomson Reuters said over the weekend it expects to hold round 15% if the deal went through.

Blackstone holds the majority stake with Canada Pension Plan Investment Board and Singapore's sovereign wealth fund GIC. Thomson Reuters still hold 45% of Refinitiv.

LSE previously tried to merge with Deutsche Boerse but was thwarted by regulators.

It said on Monday that cost synergies in excess of £350m would be deliverable in the five years after the deal completed and the transaction would deliver “strong adjusted earnings per share accretion” in the first full year.

LSE added that all sides were “in advanced discussions regarding board membership, governance and other relationship agreement terms including lock-up provisions, which reflect a long-term partnership”

“Should the transaction proceed, the Refinitiv Shareholders intend to be supportive long-term shareholders in LSEG,” it added.