Deutsche Boerse’s proposed merger with LSE unlikely to be blocked by German state of Hesse
Deutsche Boerse’s [ETR:DB1] proposed merger with London Stock Exchange Group [LON:LSE] is unlikely to be blocked by the German state of Hesse, The Times reported.
The newspaper cited observers in Hesse and outside who believe the state will probably allow the merger to proceed.
The Hesse economics minister Tarek Al-Wazir and the exchange supervisory authority have the power to block the proposed merger, the item explained.
Al-Wazir has given little indication of his position on the merger, the item said, noting that the merger has met with opposition from other politicians in Germany.
The economics ministry regulates the Deutsche Boerse’s Eurex derivatives market and the Frankfurt stock exchange, the article said, adding that Al-Wazir’s opinion will carry the most weight.
Al-Wazir has said further information is required to assess the proposed merger. The economics minister has also indicated that he will consider the merger’s potential impact on the operation of the Frankfurt stock exchange. The report cited unspecified sources who stressed that Al-Wazir’s focus is on the potential effects on markets regulated by the economics ministry, rather than on the merger per se.
The European Commission is the only other regulator with the power to block the merger, the report said.
As previously reported, the merged Deutsche Boerse/LSE would be valued at EUR 24.4bn (USD 26.92bn).