LSE-Deutsche Boerse tie-up may be on the ropes
Chances are the mooted tie-up between the London Stock Exchange and Deutsche Boerse will not go ahead as planned following the UK´s vote to leave the European Union, according to some financial market measures.
Deutsche Boerse AG
€208.20
16:45 20/09/24
Financial Services
16,083.77
16:49 20/09/24
FTSE 100
8,229.99
17:14 20/09/24
FTSE 350
4,543.89
16:49 20/09/24
FTSE All-Share
4,501.08
17:04 20/09/24
London Stock Exchange Group
10,315.00p
16:54 20/09/24
Xetra DAX
18,720.01
17:00 20/09/24
The average estimate from 25 event-driven desks, equity analysts and fund managers surveyed by Bloomberg pegged the odds of the deal finally going through at just 26.0%.
An alternative measure, derived from both companies´ share price would place the probablity of such an event at approximately 39.0%.
On 28 June, the chief of Germany´s financial markets regulator, known as Bafin, questioned if it made sense for the head office of the combined company to be located outside the European Union.
“Without doubt […] it is hard to imagine that the most important exchange venue in the Eurozone would be steered from a headquarters outside the EU. There certainly has to be an adjustment here.”
As of 13:15 BST shares in Deutsche Boerse were off by 1.45% to €72.62 in Frankfurt trading while LSE stock was changing hands 0.92% lower at 2,469p.