The London Stock Exchange Group (LSE) is set to file its US$27 billion deal to buy Refinitiv, the data and trading group, with EU antitrust authorities within weeks following protracted discussions with Brussels over the scope of its investigation into the merger, reported The Financial Times.
The two sides are still working on the key issue of what constitutes “the market” against which the deal can be assessed, according to two people with knowledge of the talks. The tie-up was originally announced on August 1.
The definition the authorities settle on is a crucial factor in whether deals receive clearance from the EU, known to be one of the toughest competition authorities. The all-share deal would transform the LSE, more than tripling its revenues to £7 billion (US$9.1 billion).
It would pivot away from relying on uneven income from trading into data distribution, analytics and indices and become one of the largest exchanges operators alongside US duo CME Group and Intercontinental Exchange.
The companies have yet to formally notify Brussels of the deal so it can investigate the tie-up for competition issues. Before filing, large companies seeking to merge typically engage in lengthy discussions with officials, who want to determine if customers will face fewer choices or higher prices.
Full Content: Financial Times
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