Transactions & Finance

European Commission Blocks £21Bn London Stock Exchange Group and Deutsche Börse Merger

The European Commission has officially blocked the deal on March 29th 2017 after one year of negotiations between the two stock markets. The commision feared the merger would create a de facto monopoly of clearing fixed income instruments in the region.

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The European Commission has officially blocked the deal on March 29th 2017 after one year of negotiations between the two stock markets. The commision feared the merger would create a de facto monopoly of clearing fixed income instruments in the region.


The deal’s failure was hardly a surprise to the parties involved. The deal seemed particularly complex due to the merged group setting their headquarters in London under the shadow of an imminent Brexit.

 

The European commission started investigations a week before giving their negative. The refusal was due to the parties' incapacity of clearing out the commissions' concerns of the merged group’s creating a monopoly.  

 

Linklaters partners Roger Barron and Simon Branigan from the London office, as well as Ralph Wollburg and Staffan Illert from the German office adviced Deutsche Börse on the deal. The LSE was adviced by Freshfliends’ Partners Andrew Hutchings and Piers Prichard Jones.

 

This is the third time both groups try to merge since 2000. The merger would have created a leading European stock market giving it an advantage position to rival with American competitors.

 

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