LSE to get EU approval for USD 27 billion Refinitiv agreement

LSE to get EU approval for USD 27 billion Refinitiv agreement

As per the latest news, London Stock Exchange Group Plc.’s USD 27 billion acquisition of data providing company Refinitiv is on track to win approval from EU (European Union) regulators early next year.

The possible EU approval has moved the company one step closer to sealing one of the transformational deals that will give it global growth. While the merger would still be eclipsed by leading financial data provider Bloomberg LP, it will outrank a merger of S&P Global Inc. and IHS Market Ltd, whose USD 44 billion deal declared this week was considered to be the largest acquisition of 2020.

According to sources with knowledge of the matter, the EU’s provisional deadline to rule on the agreement is January 21. LSE announced its plans to procure Refinitiv last year. With this move, the company is seeking to expand into the financial data sector and decrease dependence on unpredictable trading volumes.

Apparently, the financial data market has exploded with the introduction of computer-driven trading, triggering a wave of consolidation among the finance sectors as companies strive to develop one-stop platforms to cater to clients and get an edge over traditional competitors in supplying data.

Like LSE, several leading stock exchanges are looking to diversify into financial data and other services. LSE competitor Intercontinental Exchange moved deeper into data and bought Ellie Mae, one of the leading technology platforms for the mortgage finance sector for USD 11 billion in In August.

The European Commission has declined to request for comment on the matter. Refinitiv and LSE, which is 45% held by Thomson Reuters, also declined to request for comment. Meanwhile, LSE shares tripled gains on the story of Reuters and were up 8.6 percent in recent trade.

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