London Stock Exchange Group has agreed to sell its French clearing business to Euronext for $534 million, as it seeks to win regulatory approval for its proposed merger with Deutsche Boerse.
The European Commission has expressed antitrust concerns about the $28 billion merger and the impact on the clearing of derivatives contracts in particular. The Commission, in a document on the issue, has not made clear if the sale of the French clearing business, LCH Clearnet, would be enough to dispel its concerns, two sources told Reuters.
One person directly involved in the merger process said he did not believe the sale alone would address the Commission’s concerns.
“I have doubts that this is enough,” he said. He suggested that LSE might also opt to sell Borsa Italiana, operator of the Milan stock exchange, to help address antitrust concerns, although a second source familiar with the process said that a sale of Borsa Italiana was not being discussed at the moment.
An LSE spokeswoman said the company could not comment beyond its statement on the sale on Tuesday. Deutsche Boerse representatives declined to comment.
LSE Group and LCH Group Limited said in a joint statement that they had agreed on the terms of Euronext’s all-cash offer, after announcing last month that they were in exclusive talks with Euronext on a sale.
LSE and Deutsche Boerse plan to formally submit the Clearnet sale as a remedy to the European Commission’s concerns in the next few days sources told Reuters.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI