Deutsche Boerse sees Brexit risk for potential US suitors for LSE

17 Apr, 2016 5:51 pm

FRANKFURT – A British vote to leave the European Union could be a threat to any rival bidder from the United States for the London Stock Exchange but would not undermine the planned $30 billion merger between Deutsche Boerse (DB1Gn.DE) and LSE, the German exchange’s finance chief said in “Euro am Sonntag”.

“The merger makes sense regardless of Brexit. That is why it is not a risk for us,” Deutsche Boerse finance chief Gregor Pottmeyer said in an interview with the weekly publication.

“It could be a risk for US exchanges, which could present a counter offer for the LSE,” he said, adding that a British exit from the EU would mean that a U.S. exchange would no longer have a bridge to the bloc.

Deutsche Boerse and LSE said in February they were in talks to create the world’s biggest exchange by revenue. But the plan could prompt a counter bid for LSE by other players, such as US exchanges ICE or CME.

Pottmeyer said Deutsche Boerse wanted to complete the merger without any compulsory redundancies, but he said it was too early to say how many jobs might have to go and talks were still going on with employee representatives. -Reuters

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