LSE and Deutsche Boerse executives unlikely to be questioned by UK MPs about merger
The London Stock Exchange Group’s [LON:] proposed merger with German counterpart Deutsche Boerse is likely to proceed without executives from either company’s management being questioned about the deal by UK members of parliament (MPs), The Daily Mail reported. The newspaper said the Treasury Select Committee is believed to have abandoned plans to ask senior management at the two exchange operators to answer questions about the deal in parliament, but did not cite a source for the information.
The report added the chairman of the select committee, Andrew Tyrie, could yet write to regulators and to both stock exchange operators. However, the bosses are now unlikely to face questions in parliament, according to the report.
The proposed merger has faced criticism in some quarters as abandoning the UK’s national interest, the item noted.
Although the merger has been billed as a deal among equals, Deutsche Boerse shareholders will own 54.4% of the enlarged group, with the German exchange operator’s CEO Carsten Kengeter holding the top job, the report added.
The government could use rarely-exercised authority to block mergers or acquisitions deemed to be contrary to the interests of the public, the item said.
Conservative MP Bill Cash has previously urged Business Secretary Sajid Javid to act with regards to the LSE/Deutsche Boerse tie-up, the report added. Cash has argued that Deutsche Boerse was looking to undermine London’s financial services sector, according to the newspaper.
The article went on to quote sources close to Javid, who said the minister would probably decide on any course of action after regulators have made their thoughts known.
London Stock Exchange Group’s market capitalisation stood at GBP 9.04bn (EUR 11.43bn) at the close of trading in London on Friday, 6 May.
Daily Mail