Deutsche Börse, LSEG agree merger

Deutsche Börse AG and London Stock Exchange Group plc have this morning confirmed they are to merge as equals (cue much sniggering among long-term observers of the mergers and acquisitions phenomenon).

Among the many accolades the combined group piles upon itself, it says the highly complementary combination will accelerate LSEG and DBAG’s respective growth strategies and result in a significantly enhanced product offering for customers (zwei plus zwei equals funf).

The group also boasts leading positions across multi-asset classes (derivatives, equities, fixed income, foreign exchange and energy products) and the ability to service global customers across the investment, trading and risk and balance sheet management life cycle.

The merger is currently calculated to deliver significant value creation through cost synergies of EUR 450 million per annum, achieved in year three post-completion, and significant opportunities for revenue synergies.

Donald Brydon will become chairman with Joachim Faber as his deputy and senior independent director. Carsten Kengeter will become chief executive while David Warren will become chief financial officer; each of the two companies will nomiate six further non-executive directors.