The London Stock Exchange Group plc’s (LON:LSE) proposed €29bn merger with Deutsche Börse is reportedly set to be thrown out by the European Commission within days.
The commission is expected to reveal its ruling on the deal on 29 March, Reuters reported today, citing a person familiar with the situation. The EU institution and Deutsche Börse declined comment.
Earlier this month the LSE said it expected a decision on the proposal on or before 3 April.
The LSE’s plan to combine with the Frankfurt exchange was thrown into doubt last month after it refused the commission’s requirement to sell its 50% stake in Italian fixed income trading platform, MTS, as part of the deal.
The LSE said clearance from Brussels was unlikely as it considered the demand to sell MTS “disproportionate” and would hurt ongoing business in Italy.
The company didn’t give up, saying it would continue to seek approval from the commission. However, the plan had only a small chance of getting the green light after clashing with the EU.
“The group has worked hard on our proposed merger with Deutsche Börse, which received formal approval from both sets of shareholders,” chief executive Xavier Rolet said in its full year results on 3 March.
“This would be an industry-defining combination, expanding our presence as a global markets infrastructure group, anchored in Europe and we firmly believe that it would deliver significant customer and shareholder benefits through the acceleration of our complementary growth strategies, products, services and geographic footprint.”
Rolet said the newly merged group would be headquartered in London, rather than Germany. German politicians have demanded the combined business be based in Frankfurt amid worries about Brexit.
Rolet plans to leave the LSE if the commission approved but if it collapses then he'll be staying on.