The British group London Stock Exchange, which also controls Borsa Italiana, and the German Deutsche Boerse confirm that they have started negotiations in view of a possible "merger of equals", which would take place exclusively through payment in shares. This was announced by the LSE itself, specifying that at the moment it is not certain that the discussions can actually lead to a transaction.
The news sparked a wave of buying in both shares of the London Stock Exchange, which gained more than 17%, and those of Deutsche Boerse, up more than 5%.
Under the terms of the deal, LSE shareholders would receive 0,4421 new shares for each London Stock Exchange stock held, while Deutsche Boerse shareholders would receive one new share for each Deutsche Boerse stock.
If the operation goes through, the shareholders of the London Stock Exchange would have 45,6% of the new group while those of the Frankfurt Stock Exchange would have 54,4%.
The operation should still obtain the "green light from the regulatory authorities", but the merger - explain the two companies - "will offer growth opportunities", bringing "significant benefits to customers". All major businesses would continue to operate under their current brands, the two groups add.
Borsa Italiana is also part of the London Stock Exchange group.
The announcement of the new deal comes less than a year after the EU court confirmed the halt of the merger between Deutsche Borsa and Wall Street (Nyse Euronext).
