London Stock Exchange gets EU nod for $27 billion takeover of Refinitiv
EU antitrust regulators gave the green light on Wednesday to the London Stock Exchangeโs $27 billion takeover of Refinitiv, creating a stronger competitor to financial data leader Bloomberg LP. The market for financial information has exploded with the advent of computer-driven trading, triggering a flurry of takeovers as companies seek to create one-stop shops to serve clients and get an edge over traditional rivals in supplying data, dubbed the โnew oilโ.
The European Commission, which oversees competition policy in the 27-nation European Union, said its investigation found a number of concerns about the deal but that they would be addressed by โremediesโ, including the sale of LSEโs Borsa Italiana, which runs the Milan stock exchange. A combined LSE and Refinitiv will still be eclipsed by Bloomberg LP, but will outrank a combination of S&P and IHS Markit, whose $44 billion tie-up was announced last year.
The LSE said the deal remained subject to a small number of merger control and financial regulatory authority approvals and was expected to complete in the first quarter of this year.
LSE shares were up 1.7% at 9,132 pence, outshining the FTSE 100 blue chip index it compiles.
Refinitiv, which is 45%-owned by Reuters Newsโ parent Thomson Reuters, referred requests for comment to the LSE.
Pan-European bourse Euronext has already agreed to buy Borsa Italiana for 4.3 billion euros ($5.2 billion), subject to the Refinitiv takeover getting the green light.
Euronext said the EU approval improved the certainty of completing that deal, which is still subject to regulatory approvals in several jurisdictions and from its regulators.
Euronext expects to complete the acquisition in the first half of 2021.
The Commission scrutinised trading in government bonds as the LSE owns the MTS platform, while Refinitiv controls Tradeweb.
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https://www.reuters.com/article/refinitiv-ma-lse-eu/update-1-london-stock-exchange-gets-eu-nod-for-27-billion-takeover-of-refinitiv-idUSL8N2JO3VC