Euronext Makes €510 Million Swoop for LSE’s French LCH.Clearnet Division

Euronext makes offer to acquire French clearing house from London Stock Exchange, subject to completion of LSE’s merger with Deutsche Börse.

Stéphane Boujnah, CEO of Euronext

Pan-European exchange operator Euronext has made an “irrevocable cash offer” of €510 million ($531.2 million) to acquire LCH.Clearnet SA, the French clearing house owned by London Stock Exchange (LSE).

According to a statement from Euronext, terms of the deal have already been agreed with both LSE and LCH.Clearnet Group for the acquisition, and Euronext has been granted exclusivity to complete the deal.

Euronext aims to strengthen its position within Eurozone markets and diversify its offerings through the addition of a multi-asset central counterparty (CCP). The group already operates exchanges within France, the Netherlands, Portugal and Belgium.

"The potential acquisition of Clearnet represents an opportunity for Euronext to achieve revenue growth and diversification," said Stéphane Boujnah, CEO of Euronext, in a statement. "We will be in a position to provide our existing and future clients with a pan-European, fully integrated trading and post-trade platform. Euronext remains committed to delivering the best long-term solution for its post-trade activities in the interests of its clients and shareholders, irrespective of whether the acquisition of Clearnet is completed."

However, the acquisition is subject to both regulatory approval and the completion of the proposed merger between LSE and Deustche Börse, which must still be given the green light by the European Commission, amidst concerns that the combined entity would hold too much influence over derivatives clearing.

The deal, should approval be granted, is expected to close in Q2 2017.

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