The EU Competition Commission has, as expected, put up only a few objections to the merger between Deutsche Boerse, based in Frankfurt, and the London Stock Exchange, it was confirmed last night.
A joint statement said they had received the statement of objections from the commission,which in September said it was launching a fuller investigation on the deal, and it was “reflecting a narrower scope of issues”.
This apparently confirms the expectation that the only objection the EU has to the deal, which would create an global exchanges operator with estimated annual revenues of €4.7 billion, has to do with the clearing systems both operate.
Some objectors had said combining these would give them a dangerously large market share. The LSE is prepared to sell the French arm of LCH.Clearnet, its own clearing house, to assuage concerns.
There are believed to be a number of buyers lined up, and the LSE last night confirmed the sale “is making good progress”.
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The EU was seen as the last real obstacle to the deal, with only the German state of Hesse, home to the Frankfurt exchange operated by the Boerse, still to rule. This is not seen as a real stumbling block.
The deal is expected to complete next summer, if that last obstacle is cleared.