It is no longer an indiscretion. The London Stock Exchange has confirmed that it is in negotiations and that it is now close to purchasing Refinitiv – the financial data analysis firm that also controls the trading platform Eikon – for 27 billion dollars, equivalent to 23,3 billion euros (including debt). The discussions are at an advanced stage and could be concluded as early as next week.
Last year a consortium led by the American private equity group Blackstone — which also included GIC, Singapore's sovereign wealth fund, and Canada's pension fund — had purchased a stake in the 55% of Refinitiv by the Thomson Reuters group, which still retained a 45% minority stake in addition to the world-famous news agency division. The valuation of the group had been 20 billion. Instead, this acquisition would transform theLSE into a global behemoth with annual revenues of over £6 billion, in direct competition with the American Bloomberg. On the other hand, Eikon terminals are the main competitors of those owned by the former mayor of New York, Michael Bloomberg, whose candidacy for the White House has been speculated several times, but which never occurred.
The London Stock Exchange intends to finance the acquisition through the issuance of new shares for approximately £11 billion, which would turn into one of the largest issues on the London market for several years. Refinitiv members they would have a share of the 37% of the new group, but less than 30% of the voting rights. Thomson Reuters a participation of 15%. It is the first move of David Schwimmer, the former Goldman Sachs banker appointed CEO. Perhaps to mitigate the negative impact of a "hard Brexit", a hypothesis that has become probable with the election of Boris Johnson as British prime minister.
