LSE and Deutsche Boerse urge shareholders to back merger despite Brexit
London Stock Exchange (LSE) and Deutsche Boerse have urged shareholders to back their planned €20bn merger, despite the potential impact of a British exit from the EU.
The collaboration is planned to take place as a merger between equals, withhe new holding company called UK TopCo, set to be incorporated in the UK.
While both sides aim to downplay the potential impact of the British votes, the LSE shareholder vote had already been scheduled for 4th of July in order to prevent the referendum outcome from influencing the decision.
In a statement released immediately after the results of the referendum, both parties stressed: “The boards believe that the outcome of the referendum does not impact the compelling strategic rationale of the merger. The boards further believe that the combined group’s capabilities, including global reach, distribution network across Europe, Asia and America, brand strength, financial resources and deep customer relationships, remain well positioned to serve global customers irrespective of the result of the referendum.”
Meanwhile, both parties set up a Referendum Committee, which is chaired by Joachim Faber and includes Ann-Kristin Achleitner, Jacques Aigrain, Donald Brydon, Paul Heiden and Erhard Schipporeit and will meet regularly in order to consider the developments and their implications for the combined group.
However, as Reuters reported earlier today, concerns are growing among an unnamed German regulator are growing, with London as headquarter being increasingly seen as a potential problem for the merger.