LSE in talks over LCH.Clearnet acquisition

2 September 2011

The London Stock Exchange Group (LSEG) is in talks over acquiring a majority share in clearing house LCH.Clearnet.

According to a Financial Times news report, the group is negotiating a deal which would see LCH.Clearnet valued at an estimated £900,000.

Previous reports suggested that potential rival bidders to the LSEG include Markit and Nasdaq OMX, both of which have expressed an interest in the firm.

In a statement, the organisation responded to the media speculation saying: “LSEG has noted the recent press speculation concerning LSEG and LCH.Clearnet.

“LSEG can confirm that it is currently in discussions with LCH.Clearnet regarding a potential transaction. These discussions are at an early stage and there can be no certainty that any action or agreement will result.”

Earlier in the year, the LSEG failed in its bid to merge with the Toronto Stock Exchange (TMX) after it failed to attract enough shareholder support for a deal worth an estimated $3.8 billion.

Meanwhile, the proposed merger between NYSE Euronext and Deutsche Boerse received approval from the Committee on Foreign Investment in the US.

By Jim Ottewill

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development