Deutsche Börse Headquarters in Eschborn, near Frankfurt. Source: DPA
For better, for worse, in sickness and in health: The stock exchanges in London and Frankfurt issued a joint statement Friday that they still plan to marry even though Great Britain is leaving the European Union. The management boards of both companies are “convinced that the outcome of the referendum will have no influence on the basic strategic idea behind the merger,” the statement said.
“We are convinced that, because of the referendum results, the intended merger has acquired even more importance for our customers,” said the supervisory board chief of Deutsche Börse, Joachim Faber.
Deutsche Börse and LSE intend to form a European super-stock-exchange which, in terms of its market capitalization, could play in the same league as its two U.S. rivals, ICE and CME. At a special general meeting on July 4, the shareholders of the London Stock Exchange are scheduled to vote on the merger plans. Stockholders of Deutsche Börse have until July 12 to make a decision.
The two exchanges agreed in March to merge in a $30 billion deal to create a European super-stock exchange domiciled in Britain with headquarters in both London and Frankfurt.
However, the outcome of Thursday’s referendum is likely to strengthen calls for it to be based in Frankfurt. Renewed negotiations on this point can be expected. Both companies have set up referendum committees tasked with negotiations regarding the legal domicile. “The committee is examining and discussing all relevant issues,” the chief executive of Deutsche Börse, Carsten Kengeter, told Handelsblatt.