Deutsche Boerse and LSE to meet German watchdogs over merger

Deutsche Boerse and London Stock Exchange (LSE) are planning to meet German policy makers next week to discuss the two exchanges planned merger, Reuters reported.

One of the main issues that will be mulled over by the groups’ chief executives and chairmen as well as the German state of Hesse’s prime minister and economy minister is the issue of where a merged group will be headquartered.

The headquarter's location is seen as the last major obstacle standing in the way of the merger going through next to the antitrust clearance by the EU commission, whose decision is expected by 13 March.

Frankfurt’s stock exchange is obliged by law to support the development of the city as a centre for securities trading and Hesse’s market watchdog Wiesbaden has yet to state its view on the merger although people have said it fears it may lose regulatory control if it was based outside of Germany.

Currently the plan is to set up a joint headquarters in London, with a potential compromise being having dual headquarters to allow having one in Frankfurt as well, according to Reuters sources.