A day after Deutsche Börse and the London Stock Exchange announced plans to merge, debate raged in the German and British financial capitals over the wisdom and terms of the proposed deal.
Pundits and financial experts questioned the exchanges’ plans to enter a “merger of equals” dominated by the German exchange but with the key decision-making split, Solomon-like, equally between the two platforms.
In Frankfurt, where Deutsche Börse is based, a columnist for the Frankfurter Allgemeine Zeitung newspaper criticized the deal’s proposed concessions to the British exchange, saying such a fusion wouldn’t make sense unless the headquarters of the combined operation was based in Frankfurt, not London.
The two exchanges on Tuesday indicated that they would run dual headquarters in London and in Eschborn near Frankfurt, where Deutsche Börse has its headquarters, according to information obtained by Handelsblatt.
“It should be clear that the new combined exchange can only have its headquarters in Frankfurt and that the chief executive should only be someone from the Deutsche Börse,” wrote Daniel Mohr, a columnist for the FAZ.
If those conditions weren’t met, Mr. Mohr wrote, then “the price for the merger would be too high.”