LSE seeks to acquire Refinitiv in a $27 billion deal

Bloomberg/Chris Ratcliffe

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The exchange has seen the most growth in the last few years from its information services unit, driven by the FTSE Russell Indexes business and adding a data goliath would aim to help accelerate that push.

Sunday 28, July 2019

London Stock Exchange Group (LSE) is in talks to acquire Refinitiv, the financial data and trading platform provider, in a deal that could be valued at $27 billion and is expected add fuel to the bourse’s fastest-growing business, reported Bloomberg.

LSE stated that it will issue shares as part of the transaction and Refinitiv holders may receive a stake of approximately 37 per cent.

The effort is the first major strategic move by LSE’s Chief Executive Officer David Schwimmer, who joined the 218year-old exchange from Goldman Sachs Group last August and has been riding a 40 per cent surge in the stock price this year.

The acquisition of Refinitiv will be a quick flip for the Blackstone Group-led consortium that bought a majority stake in Refinitiv from Thomson Reuters last year. The company has been active ever since, as its Tradeweb Markets bond-trading platform went public in April.

Last week, the Deutsche Boerse’s chief executive officer said that his firm is still in talks to buy some of Refinitiv’s foreign-exchange business units.

An LSE-Refinitiv deal could be announced as soon as next week, but no final agreement has been reached and the talks could still fall apart.

Thomson Reuters stated that it expects to hold about a 15 per cent stake in LSE if the transaction is completed. The 30-year Reuters News agreement signed with Refinitiv in 2018 will continue if ownership of Refinitiv changes.

Blackstone, Canada Pension Plan Investment Board and Singapore’s GIC acquired 55 per cent of Refinitiv—as the former financial and risk unit of Thomson Reuters was renamed—in a transaction last year that valued the business at $20 billion.

LSE has previously sought to bulk up by merging with Deutsche Boerse, a deal that would’ve vaulted the combined firm into the ranks of the biggest global exchange firms, along with CME Group and Intercontinental Exchange.


TAGS : London Stock Exchange Group, Refinitiv, GIC, Deutsche Boerse, Intercontinental Exchange, Blackstone Group

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