Deutsche Boerse to “devote all efforts” to making London Stock Exchange merger work
Deutsche Boerse today said it will “devote all our efforts” to completing its planned merger with the London Stock Exchange.
In a statement issued today, chairman Joachim Faber said that following last week’s Brexit vote “it is more important than ever to maintain a stable financial link” to the UK and said the merger can play a “key role”.
Faber made no mention of the location of the merged company’s headquarters, however, after City PM revealed this is to be debated at a senior level following the Brexit vote and the intervention of an influential German regulator.
Read more: London HQ of merged stock exchange in doubt after Brexit
The LSE said this was “untrue”, adding: “Both companies have said, and re-confirmed on Friday, that we remain fully committed to the agreed and binding merger terms, and continue the process of obtaining the necessary approvals.”
Faber said that the deal's Referendum Committee will meet regularly over the coming months to discuss Brexit and its implications on the deal.
In his statement today, Faber said: “Now that the British population has decided to leave the EU, it is more important than ever to maintain a stable financial link to the United Kingdom. Financial centres across Europe might benefit from this. Frankfurt should take the lead in this context, securing the link between Europe's largest economy and London, the largest financial centre in the world.
“A merged exchange created from the combination of LSE and Deutsche Boerse can assume a key role in this context.”
Read more: Stock exchanges "fully committed" to merger after Brexit
He added: “We will therefore continue to devote all our efforts to realising the project. Over the next months, the Referendum Committee will meet on a regular basis, to discuss all developments and their impact on the future combined group, and to prepare recommendations. This will involve a comprehensive analysis of economic, political, regulatory and tax implications.
“The committee will also consider the interests of clients and other market participants, as well as the objective of securing the stability and viability of financial markets for the long term.”