First Salvo

First Salvo: LSE and Deutsche Börse merger blocked by EU

The EU commission has blocked a £21bn merger of the London Stock Exchange and Deutsche Börse, halting plans for a tie-up

The EU competition regulator, Margrethe Vestager, said the merger of the London and Frankfurt exchanges would create a de facto monopoly.

She said: “The European economy depends on well-functioning financial markets. That is not just important for banks and other financial institutions. The whole economy benefits when businesses can raise money on competitive financial markets."

“The merger between Deutsche Börse and the London Stock Exchange would have significantly reduced competition by creating a de facto monopoly in the crucial area of clearing of fixed income instruments."

“As the parties failed to offer the remedies required to address our competition concerns, the commission has decided to prohibit the merger.”

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