Deutsche Börse LSE merger to lead job cuts

The proposed merger between Deutsche Börse and London Stock Exchange could lead to 1250 job cuts, as part of €450m cost saving measures per annum, the groups announced.

The cost cutting measures would enter effect over a three year period following the closure of the deal. From the fifth year of completion on, the group aims to achieve further €250m pre-tax savings per annum.

While both parties stressed that the outcome of the UK  referendum on EU membership on 23 June was not a condition of the merger, LSE shareholders will vote on the merger after the outcome of the referendum, on 4 July.

Hans-Walter Peters, president of the German Banking Association welcomed  the proposed merger as an opportunity to increase European competitiveness against the US and Asia but stressed the importance of an equal representation of Frankfurt as  financial center.

Peters highlighted a possible Brexit vote as key threat to the proposed merger, following a British vote to leave the EU, merger plans would have to be reconsidered, he argued.

ABOUT THE AUTHOR
Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

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