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. "It would also be conditional on the successful closing of the merger".
"The proposed sale of LCH SA would be subject to review and approval by the European commission in connection with the recommended merger of LSEG and Deutsche Börse AG which was announced on 16 March 2016", LSE said in a stock market statement. The all-share merger was initially agreed in March a year ago and saw off a rival offer for LSE Group from Intercontinental Exchange Inc, operator of the New York Stock Exchange.
The EC had stated its objections to the LSE's merger with Deutsche Boerse in December, but outlined fewer concerns than in its first letter sent to both exchange operators in September.
The merger will now face a three-month probe by European competition regulators and LSE Group will hope the sale of LCH SA will be enough to remedy any concerns watchdogs may have.
But the deal was thrown into doubt in June when the United Kingdom voted to leave the European Union, sparking criticism about the combined LSE-Deutsche Boerse's plans to be headquartered in London.