London Stock Exchange in Merger Talks With Deutsche Boerse

MOSCOW (Sputnik) — London Stock Exchange (LSE) and the Deutsche Boerse are discussing a potential merger to create a new holding company, LSE said in a statement published Tuesday.

"The Boards believe that the Potential Merger would represent a compelling opportunity for both companies to strengthen each other in an industry-defining combination, creating a leading European-based global markets infrastructure group," the press comment said.

Deutsche Boerse shareholders are expected to hold a 54.4-percent stake and LSE shareholders would control a 45.6-percent stake in the share capital of the Combined Group.

The Combined Group would have a unitary board composed of equal numbers of LSE and Deutsche Boerse directors. All key businesses of LSE and Deutsche Boerse would operate under their current brand names.

LSE stressed that there was "no certainty that any transaction will occur." Under UK rules, the German stock exchange has until March 22, 2016 to announce a firm intention to make a merger offer to LSE.

This is the third time that the two exchange operators are trying to merge in order to create a powerful European exchange organization. The first such attempt took place back in 2000.