LSE’s chief David Schwimmer: EU will allow £21 billion deal for Refinitiv
London Stock Exchange boss David Schwimmer was today defiant that the group will complete its £20.5 billion takeover of data giant Refinitiv, despite murmurings that European regulators may try to scupper the tie-up.
Schwimmer said the LSE would formally lodge an application for the deal with the European Commission in March and that it would close in the second half of the year.
The confirmation comes after reports this week that there had been significant issues raised in the pre-notification phase with Brussels, when both companies and regulators identify concerns before a formal probe starts.
It is understood Brussels is worried the tie-up would make the LSE a digital powerhouse that would dwarf all rival bourses in Europe.
But Schwimmer denied there were any issues and said work had already started on integrating the two businesses. “We remain on track to close the Refinitiv transaction in the second half of this year, detailed integration planning is under way,” said the former Goldman Sachs veteran who took over the reins at the LSE in 2018.
“The deal is moving along and we have had constructive engagement with the EU regulators.”
The London bourse agreed to buy Refinitiv — which was owned by Thomson Reuters— last summer in a bid to deepen its push into providing data.
The LSE and Refinitiv tie-up would see the group generate 70% of revenues from data, up from its current position of 40%.
The exchange also reported a 14% rise in profits to £1.1 billion for 2019, while revenue rose 8% to £2.07 billion.
The results were boosted by LSE- owned clearing house LCH, which reported a 15% rise in revenue.
Growth at LCH is a relief for investors as Brexit is helping rival Frankfurt to attract more clearing from London. Paris is also looking at ways to lure clearing away from London to the EU.
The LSE tried to quell fears that it could lose business in the coming months and said it had applied to the EU for LCH to continue serving customers in the bloc after the UK transition period ends in December.
