FRANKFURT: The Frankfurt and London stock exchanges said Friday they would press ahead with their planned merger even though Britain has voted to leave the European Union.
“Deutsche Boerse AG and London Stock Exchange Group note the result of the UK Referendum which recorded a majority of votes in favor of leaving the European Union,” the two stock markets said in a joint statement.
“As stated in the shareholder documents published on June 1, 2016, the recommended all-share merger is not conditional on the outcome of the referendum,” the statement said. The two companies’ boards “remain fully committed to the agreed and binding merger terms, and continue the process of obtaining the necessary approvals.”
Deutsche Boerse and LSE have said they intend to seal their planned merger to create a new global player in July.
LSE shareholders are to vote on the plans at a meeting in July.
The tie-up, which both sides describe as a “merger of equals”, will create one of the world’s biggest stock exchanges.
Under the agreed terms, Deutsche Boerse shareholders will end up with 54.4 percent of the new holding company’s capital, and LSE shareholders with 45.6 percent.
“The boards believe that the outcome of the Referendum does not impact the compelling strategic rationale of the merger,” the statement said.
The two companies were in “ongoing and constructive dialogue with the appropriate UK and German governments and lead regulators,” it continued.
They would “continue to seek merger control clearances in the European Union, the United States and Russia.”
Deutsche Boerse shares were down nearly nine percent in mid-morning trade on the Frankfurt stock exchange, while the overall DAX index was down 7.2 percent. AFP