German minister: It is “crystal clear” London Stock Exchange-Deutsche Boerse HQ should be in Frankfurt
The location of the legal headquarters of the merged London Stock Exchange-Deutsche Boerse company is in the spotlight again today after an influential German minister said the UK should lose out.
Thomas Schaefer, finance minister in the state of Hesse, where Deutsche Boerse is based, said the reasons for the HQ being in Frankfurt are “crystal clear”.
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“Those involved in London must recognise, also in their own interests, that it would not be a good idea to keep the plans as they are now,” he told Reuters.
“This might be legally complicated,” he added. “But where there’s a will, there’s a way.”
As part of the merger agreement, Deutsche Boerse shareholders will take a 54.4 per cent stake in the company and the German exchange’s chief executive, Carsten Kengeter, will take on the same role across the merged company, while London will take the legal headquarters.
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The HQ became an issue after the UK voted to leave the European Union, with sources close to the deal telling City PM shortly after the referendum that this would be debated by executives. German politicians were also informed that the merged group would have an EU headquarters.
City PM understands that in recent weeks German politicians have been told the HQ will not be moved before the deal is complete but reassured Hesse that it will retain regulatory oversight of the Frankfurt Stock Exchange and clearing house Eurex regardless.