LSE receives £434m offer from Euronext for French clearing business LCH
The London Stock Exchange (LSE) has received a 510 million euro (£434 million) offer from Euronext for its French clearing business LCH as it bids to drive through a £21 billion tie-up with Deutsche Borse.
LSE said that it has agreed terms with Euronext and the deal will go ahead subject to the successful closing of the merger between the British and German exchanges.
The move is part of an attempt to see off anti-trust concerns raised by the European Commission over the mega-merger.
Following Britain's shock decision to quit the European Union, LSE and Germany's Deutsche Borse have moved quickly to assuage any fears that the referendum result would scupper the deal.
The deal to sell LCH still faces regulatory scrutiny but Euronext has received support in favour of the transaction from over a third, or 33.36%, of its shareholders.
For the year ending December 31 2015, LCH generated net profit of 36 million euros (£30 million) and held gross assets of 260 billion euros (£221 billion) and net assets of 303 million euros (£257 million).