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London Stock Exchange set to merge with Germany's Deutsch Boerse - despite Brexit

Economy:
London Stock Exchange set to merge with Germany's Deutsch Boerse - despite Brexit

THE London Stock Exchange (LSE) is set to merge with its German equivalent Deutsche Boerse to create a European exchange giant - despite concerns over how the pairing would work post-Brexit.

LSE shareholders today voted in favour of the & pound; 20billion merger, even though critics said it could be "shackling itself to a corpse" after Britain voted to leave the European Union.

However, chairman Donald Brydon told that he was confident of "satisfactory" regulatory approval for the deal from Brussels.

And added: "There is no reason to think otherwise today."

Mr Brydon said Britain would remain in the EU for at least another two years, during which there was ample time to work out the "optimal structure" for the deal.

At today's shareholder meeting Dinesh Jain, an individual shareholder, asked why, given that Britain was leaving the EU, "do we want to shackle ourselves to a corpse".

He added that it was "unlikely" that Germany would now approve the merger if Britain is not part ofthe bloc.

It comes after German markets regulator BaFin last week said it was hard to see how the head office of the merged group could still be in London given that Britain was leaving the EU.

But chief executive of the group Xavier Rolet said the group was "extremely well positioned" globally no matter what the outcome of British negotiations with the EU on new trading terms.

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04 July 2016, 17:40