Competition Commission set out conditions for LSE takeover

01 November 2005

The UK’s Competition Commission issued its report on the conditions under which Euronext and Deutsche Boerse may bid for the London Stock Exchange stating that the two firms must ensure the independence of the LSE’s clearing services. The two prospective bidders were also warned not to obstruct access to the LSE’s clearance provider by any competitor. In March the Office of Fair Trading (OFT) referred the proposed acquisition of London Stock Exchange plc (LSE) by Deutsche Börse AG or Euronext to the Competition Commission for investigation and report. Pan-European bourse Euronext could now move towards formalising a bid and agreeing a price with the LSE. Deutsche Boerse refused to comment on whether it would resurrect its bid.

Following the announcement, Paris-based Euronext said that it would continue to work with shareholders in looking at all available options to boost shareholder value. Commentators also suggested that the report could prompt offers from other quarters such as Australia’s Macquarie Bank, which has previously voiced its interest in the London exchange.

Report

NA