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LSE and Deutsche Borse 'fully committed' to merger plan despite Brexit vote

Published 24/06/2016

Shareholders in LSE will vote on the all-share deal on July 4
Shareholders in LSE will vote on the all-share deal on July 4

The London Stock Exchange (LSE) and Deutsche Borse have said they remain "fully committed" to their proposed £21 billion merger, despite Britain voting to leave the European Union.

In a joint statement, the exchanges said they "remain fully committed to the agreed and binding merger terms, and continue the process of obtaining the necessary approvals".

"The boards believe that the outcome of the referendum does not impact the compelling strategic rationale of the merger."

Shareholders in LSE will vote on the all-share deal on July 4 while Deutsche Borse investors can tender their shares until July 12. The companies opted to wait until after the referendum to allow shareholders to digest any potential implications.

Joachim Faber, chairman of the supervisory board of Deutsche Borse and chairman of the referendum committee, said: "The decision of the UK to leave the EU makes it ever more important to maintain and foster ties between the UK and Europe.

"We are convinced that the importance of the proposed combination of Deutsche Borse and LSE has increased even further for our customers and will provide benefits for them as well as our shareholders and other stakeholders."

The deal has received the blessing of two shareholder advisory groups, Institutional Shareholder Services and Glass Lewis.

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