London Stock Exchange Group shareholders are set to vote on the $27bn (£20bn) planned takeover by Frankfurt-based Deutsche Boerse. The terms ‘takeover’ and ‘acquisition,’ in this context, have the same meaning.
The two companies have said that the merger is still on course, despite the Brexit vote.
Both companies said in a joint statement that the outcome of the EU referendum vote does not affect “the compelling rationale of the merger”.
Joachim Faber, Chairman of the Supervisory Board of Deutsche Börse and Chairman of the Referendum Committee, recently stated: “The decision of the UK to leave the EU makes it ever more important to maintain and foster ties between the UK and Europe.
“We are convinced that the importance of the proposed combination of Deutsche Börse and LSEG has increased even further for our customers and will provide benefits for them as well as our shareholders and other stakeholders.”
However, regulators have warned there needs to be ‘an adjustment’ for the deal to happen.
Bafin, Germany’s regulator, said that the headquarters of the merged entity could not be in London as previously planned.
“Without doubt… it is hard to imagine that the most important exchange venue in the eurozone would be steered from a headquarters outside the EU,” said Felix Hufeld, Bafin’s president.
“There certainly has to be an adjustment here.”
The regulator does not have the power to prevent the deal from going through, but its voice is certainly being heard by shareholders of the two companies.
The deal is expected to be approved by LSEG shareholders on Monday, while Deutsche Boerse shareholders will vote on 12 July.