Deutsche Boerse boss defends London HQ of merged stock exchange amid political pressure in Germany
The chief executive of Deutsche Boerse has played down the significance of the proposed UK headquarters of its merged company with the London Stock Exchange amid political pressure in Germany.
The two exchange companies are seeking to tie-up their £21bn merger in the first half of next year and are currently trying to win regulatory approval from the European Commission.
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The other big hurdle facing the deal is winning approval from the state of Hesse, where Deutsche Boerse is based.
Politicians in the area have repeatedly spoken out against the fact that, under the terms of the deal, the joint holding company’s HQ would be in London.
Opposition intensified after the UK voted to leave the European Union and, earlier this year, sources close to the deal told City PM the London HQ was in doubt and would be debated at a senior level.
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But Deutsche Boerse’s chief executive, Carsten Kengeter, has dismissed concerns that a non-EU headquarters would lead to the local regulator in Hesse losing oversight of the bourse, a key concern for politicians.
“Those regulated entities on the ground are fully regulated, can be fully influenced by whatever the local regulator wants, or finds interesting to look at and deal with,” he told the Financial Times. “And the holding company is different; the holding company is not regulated.”