LSE takes control of FTSE
The London Stock Exchange Group has agreed to buy the 50% stake in FTSE International Limited, from Pearson Plc, that the London Stock Exchange Group does not already own.
Following the transaction, which is expected to close in Q1 2012, subject to customary closing conditions, FTSE International will be wholly owned by the London Stock Exchange Group.
FTSE currently calculates and manages over 200,000 indices worldwide, which are linked to over $3 trillion in global assets under management. These include the widely used global benchmark, the FTSE All-World Index, as well as a range of flagship indices around the world, such as the FTSE 100 Index and the FTSE MIB Index. FTSE also has partnership indices with several stock exchanges; FTSE/JSE Top 40 Index, FTSE KLCI and the Straits Times Index, which form the basis of a range of high profile ETFs globally.
The London Stock Exchange Group’s plans for the FTSE include its expansion in geographies such as the US, where increased usage of its indices among some of the largest asset owners and investment managers accounts for 30% of total index revenues.
The change in ownership of the FTSE will not bring any changes to the management. Mark Makepeace remains as chief executive of FTSE. Makepeace said: “FTSE has built a successful global benchmarking business, amidst an evolving industry where investor appetite for our products is fast growing. The transition announced today will be an important catalyst in FTSE’s global expansion, and the rollout of high quality index solutions to meet demand from global investors, as well as grow FTSE’s business in the ETF and derivatives space.”
Xavier Rolet, chief executive, London Stock Exchange Group, said: “Fully aligning FTSE with one of the world’s most liquid and most international trading groups is an exciting opportunity. This transaction further delivers on our diversification strategy, expanding the London Stock Group’s existing offering deeper into indices, derivatives and market data products and services. This is a business we know well, and we expect that going forward our customers will directly benefit.”