 "LSE shareholders approve Deutsche Börse merger")
Shareholders in the London Stock Exchange (LSE) Group approved on Monday plans to merge with Deutsche Börse in an all-stock deal that the stock exchange operators hope will create a European champion in the industry.
The approval came about a week and a half after Britons voted to leave the European Union.
The surprising outcome of the referendum led to questions about whether the merger could be completed under its current terms, and in particular whether the combined entity's holding company would be based in Britain, as planned.
The exchanges, however, said they would press ahead.
Last week, the head of BaFin, the German financial regulator, questioned whether the combined business could be based in Britain given the outcome of the referendum. Some German investors have also called for the companies to re-evaluate their plans in light of the vote, and to move the holding company's base elsewhere in the European Union.
"I strongly endorse the statement of London Stock Exchange Group following their general meeting today and continue to recommend the transaction to the shareholders of Deutsche Börse," Joachim Faber, the Deutsche Börse chairman, said in a news release.
On Monday, shareholders representing 99.89 per cent of the London Stock Exchange Group's outstanding shares voted in favour of the deal.
The exchanges' boards have formed a referendum committee to make recommendations to the board of the combined group "in order to meet all regulatory requirements to secure closing of the transaction and achieve its commercial objectives."
The committee's work may take "many months," the companies said.
The approval came about a week and a half after Britons voted to leave the European Union.
The surprising outcome of the referendum led to questions about whether the merger could be completed under its current terms, and in particular whether the combined entity's holding company would be based in Britain, as planned.
The exchanges, however, said they would press ahead.
Last week, the head of BaFin, the German financial regulator, questioned whether the combined business could be based in Britain given the outcome of the referendum. Some German investors have also called for the companies to re-evaluate their plans in light of the vote, and to move the holding company's base elsewhere in the European Union.
"I strongly endorse the statement of London Stock Exchange Group following their general meeting today and continue to recommend the transaction to the shareholders of Deutsche Börse," Joachim Faber, the Deutsche Börse chairman, said in a news release.
On Monday, shareholders representing 99.89 per cent of the London Stock Exchange Group's outstanding shares voted in favour of the deal.
The exchanges' boards have formed a referendum committee to make recommendations to the board of the combined group "in order to meet all regulatory requirements to secure closing of the transaction and achieve its commercial objectives."
The committee's work may take "many months," the companies said.
©2016 The New York Times News Service