Could London Stock Exchange Merger Be Blocked By Regulators?

Morningstar says the proposed merger between LSE and Deutsche Boerse could benefit both companies – and may side-step competition concerns

Michael Wong, CPA 24 February, 2016 | 3:40PM
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London Stock Exchange Group PLC (LSE) and Deutsche Boerse AG (DB1) have confirmed rumours that they are again discussing a merger.

This "merger of equals" would create the dominant European exchange group. But would does the deal have a chance of succeeding? Details are still scare but some points immediately jump out to us.

Would This Breach Anti-Trust Rules?

First are anti-trust concerns. Recently these were cited as by the European Commission when it blocked the attempted merger between Deutsche Boerse and the NYSE Euronext, which was blocked by the European Commission.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Deutsche Boerse AG146.50 EUR0.00
London Stock Exchange Group PLC7,600.00 GBP0.00Rating

About Author

Michael Wong, CPA  Michael Wong is a stock analyst at Morningstar.