LSE shareholders approve Deutsche Boerse merger

London Stock Exchange said on Monday that shareholders have voted overwhelmingly in favour of its merger with Deutsche Boerse.

The exchange said 99.92% voted in favour of the deal following an extraordinary general meeting in London.

Deutsche Boerse shareholders now have until 12 July to approve the deal, which still faces a number of regulatory hurdles before it can go through.

Exane BNP Paribas said: “Unsurprisingly there have been a lot of headlines about various German stakeholders opposing the location of the HQ. While this can be resolved, this is a key condition in the merger prospectus and cannot be changed in the near term.

“We see risks of political interference as exchanges are viewed as the centre of capital markets: the probability of DB1/LSE closing is low.”

The exchange said 99.89% voted in favour of the deal following an extraordinary general meeting in London.

Deutsche Boerse shareholders will now have until 12 July to approve the deal, which still faces a number of regulatory hurdles before it can proceed.

Joachim Faber, chairman of Deutsche Boerse, said: "I strongly endorse the statement of London Stock Exchange Group following their General Meeting today and continue to recommend the transaction to the shareholders of Deutsche Boerse."

Exane BNP Paribas said: “Unsurprisingly there have been a lot of headlines about various German stakeholders opposing the location of the HQ. While this can be resolved, this is a key condition in the merger prospectus and cannot be changed in the near term.

“We see risks of political interference as exchanges are viewed as the centre of capital markets: the probability of DB1/LSE closing is low.”

The UK's decision to leave the European Union has added to uncertainty about whether the deal will go through.

Deutsche Boerse and LSE reaffirmed their commitment to the merger following the result of the EU referendum, reiterating on 24 June that the outcome of vote played no part in the deal.

The companies said at the time that the referendum does not impact the compelling strategic rationale of the merger.

Faber said: "The decision of the UK to leave the EU makes it ever more important to maintain and foster ties between the UK and Europe.

"We are convinced that the importance of the proposed combination of Deutsche Boerse and LSEG has increased even further for our customers and will provide benefits for them as well as our shareholders and other stakeholders."

At 1340 BST, LSE shares were down 1.2% to 2494p while DB shares were down 0.7% to €72.67.