LSEG to complete Refinitiv acquisition next week
20 January 2021 UK
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London Stock Exchange Group (LSEG) has confirmed that completion of its all-share acquisition of US data analytics firm Refinitiv will be completed on 29 January.
Refinitiv is among the largest financial markets data and infrastructure providers, serving more than 40,000 institutions in 190 countries.
The purchase, along with re-admission to listing and trading, is still subject to the satisfaction or waiver of any outstanding merger control and financial regulatory authority approvals, which are expected to occur shortly.
As the transaction constitutes a reverse takeover under the listing rules, admission of the company’s existing ordinary shares to the premium segment of the official list and to trading on LSEe’s main market is expected to be cancelled at 8 am on 29 January, with simultaneous re-admission of the company’s voting ordinary shares.
Last week, the European Commission approved the deal assuming several pre-conditions are met to avoid harming market competition.
LSEG is required to continue offering global over-the-counter (OTC) interest rate derivatives (IRD) clearing services performed by LCH Swapclear on an open-access basis.
It must not engage in commercial strategies that would discriminate against customers based on the source of their OTC IRD trade submitted to LSEG for clearing.
It must also divest 99 per cent of its stake in the Borsa Italiana group, which includes MTS, LSEG's trading venue for EGBs. A deal is underway with Euronext.
Executive vice president of the European Commission, Margrethe Vestager, who is in charge of competition policy, had stated last week that the EC could approve the proposed acquisition of Refinitiv by LSEG because LSEG offered commitments that will ensure that the markets will remain open and competitive and the acquisition will not lead to higher prices or less choice and innovation for these products.
She added: “Infrastructure competition in trading services and access to financial data products on fair and equal terms is essential for the European economy and in particular for consumers and businesses.”
Refinitiv is among the largest financial markets data and infrastructure providers, serving more than 40,000 institutions in 190 countries.
The purchase, along with re-admission to listing and trading, is still subject to the satisfaction or waiver of any outstanding merger control and financial regulatory authority approvals, which are expected to occur shortly.
As the transaction constitutes a reverse takeover under the listing rules, admission of the company’s existing ordinary shares to the premium segment of the official list and to trading on LSEe’s main market is expected to be cancelled at 8 am on 29 January, with simultaneous re-admission of the company’s voting ordinary shares.
Last week, the European Commission approved the deal assuming several pre-conditions are met to avoid harming market competition.
LSEG is required to continue offering global over-the-counter (OTC) interest rate derivatives (IRD) clearing services performed by LCH Swapclear on an open-access basis.
It must not engage in commercial strategies that would discriminate against customers based on the source of their OTC IRD trade submitted to LSEG for clearing.
It must also divest 99 per cent of its stake in the Borsa Italiana group, which includes MTS, LSEG's trading venue for EGBs. A deal is underway with Euronext.
Executive vice president of the European Commission, Margrethe Vestager, who is in charge of competition policy, had stated last week that the EC could approve the proposed acquisition of Refinitiv by LSEG because LSEG offered commitments that will ensure that the markets will remain open and competitive and the acquisition will not lead to higher prices or less choice and innovation for these products.
She added: “Infrastructure competition in trading services and access to financial data products on fair and equal terms is essential for the European economy and in particular for consumers and businesses.”
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