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.