Wed, 08 Jun 2016 | MERGER
The chief executive of German stock exchange clearing house Deutsche Boerse says that the proposed £21 billion merger with the London Stock Exchange (LSE) will be vital for maintaining links between the two countries in the event of a ‘Brexit’ vote.
The plan for a merger between Deutsche Boerse and the LSE was first announced in mid-March, but the proposed £21 billion deal has faced uncertainty in the face of a possible ‘Brexit’ if UK voters decide that the country should leave the EU during the referendum vote that is due to take place on 23 June 2016.
Nevertheless, Carsten Kengeter, the vehemently pro-EU chief executive of Deutsche Boerse, has stressed that the merging of the two major stock exchanges could be ‘key’ in maintaining strong links between the two industrial powerhouses of Europe in the event of the UK leaving the EU.
Mr Kengeter recently told The Daily Telegraph: “I want the UK to stay part of the EU, but if it’s not, the link we would provide between the Continent and the UK would be key.”
Both of the companies behind the two stock exchanges maintain that the deal will go through no matter what the outcome of the EU referendum, but this is the first time that Mr Kengeter has seriously considered the fate of the deal with the vote being too close to call at the start of June.
Regardless, investors on both sides of the £21 billion deal are due to make their final decision after the EU referendum has taken place. Mr Kengeter has argued that both markets would be far more stable if they were to merge, but that it would still need approval of regulators to ensure that sufficient competition is maintained. There will also be the possibility of some 1,250 job losses to be considered.
For more information on mergers and acquisitions, see what to look out for when buying a business.
One of the top job search portals - developed in-house - with over 1m UK-based vacancies available from employers operating in nearly all sectors across the UK. Also develops & operates a series of complementary platforms & mobile apps for use within...
Manufacture and supply of high quality, hard metal, flanges and butt welds with machining services. Enviable reputation. Niche offering. Long standing relationships with suppliers. In-house manufacturing capabilities. Diverse client base including m...
Public and private sector road surfacing and civil engineering contractor with a prestigious Royal Warrant for Road Maintenance. Provides roadworks, groundworks and civil engineering services. Diverse customer base including Royal Estates, local auth...
|
19
|
|
Jan
|
Luxury lodging group enters administration | ADMINISTRATION
An Essex-based company which operates eight luxury lodge par...
|
17
|
|
Jan
|
Fine paper business enters administration | ADMINISTRATION
Arjowiggins UK, which operates a number of trading companies...
|
15
|
|
Jan
|
Hawk Plant enters administration | ADMINISTRATION
The Shropshire company, that has previously undertaken landm...
Sign up to receive our acquisition alert emails to get your FREE guide
|
09
|
|
Aug
|
Mutares to acquire Knorr-Bremse subsidiaries | BUSINESS SALE
Knorr-Bremse is set to sell its UK subsidiaries to Mutares, ...
|
18
|
|
Jun
|
Norwich restaurant put up for sale | BUSINESS SALE
The Library Restaurant, based at Guildhall Hill, Norwich, ha...
|
08
|
|
Dec
|
Leamington company closures put jobs at risk | ADMINISTRATION
A major Leamington business is facing hundreds of redundanci...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources