The London stock Exchange ready to diversify

While the Brexit should materialize before the end of the year, the London stock Exchange seeks new sources of growth. The London Stock Exchange (LSE) has confi

The London stock Exchange ready to diversify

While the Brexit should materialize before the end of the year, the London stock Exchange seeks new sources of growth. The London Stock Exchange (LSE) has confirmed it has entered into discussions for the possible acquisition of the global provider of data and analysis, Refinitiv. The exchange group is willing to spend $ 27 billion (debt included) to put the hand on the company controlled by the investment fund Blackstone (55% of the capital) and the media group Thomson Reuters (45 %).

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The operation, which could be finalized this week, should allow ESA to increase its capabilities in terms of data and distribution, to diversify its offerings in trading and expand its presence in the world," said the group. In fact, Refinitiv has more than 40,000 customers, mainly traders and investment professionals, in over 190 countries.

to Reduce its costs by over 350 million pounds

"data are the lifeblood of the financial markets and their value continues to grow"

Kevin McPartland, director of the division market structure and technology research at Greenwich Associates

The project illustrates the emphasis placed by the participants on the products linked to the data to increase their revenues, while aiming for a global presence. To the extent that the benefits of their traditional activities, such as share transactions, continues to decline. In addition, many of the projects of marriage between the major exchange groups have all failed. In the image, for example, the proposed merger between the LSE and the German Deutsche Börse. "Today more than ever, data is the lifeblood of financial markets, and their value continues to grow," says Kevin McPartland, director of the division market structure and technology research at Greenwich Associates. "It merely makes them more competitive and more interesting (...) for the clients (...)", adds Spencer Mindlin, an analyst at Aite Group.

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The operation would also allow the LSE to reduce its cost of more than 350 million pounds (388 million euros) per year over five years. On Monday, investors cheered this strategic movement, the action LSE winging of 15,34 %.

Updated Date: 30 July 2019, 00:00

Kathleen Lees

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