LSE Receives Approval for LCH.Clearnet Deal

The entrance to the London Stock Exchange
The deal will give the LSE a 60 percent majority stake in LCH.Clearnet.

Shareholders green light 60 percent stake move.

The London Stock Exchange Group (LSE) has received preliminary shareholder approval from LCH.Clearnet for its takeover bid proposed last month.

The LSE's offer from 9 March 2012 received a majority approval from 60 percent of LCH.Clearnet's shareholders, and an overwhelming majority of proxy votes. Although the acceptance condition has been met, however, the offer will be extended until 13 April 2012 to allow remaining shareholders to participate.

Under the terms of the offer, the LSE will assume ownership of 60 percent of shares in LCH.Clearnet, in a deal valued at around £387 million (approximately $621 million).

The incorporation of a clearing house is being seen as a crucial aspect of strategy for exchanges moving forward, given regulatory reform of over-the-counter markets, and central clearing of standardized derivatives being mandated as a result. Recently, NYSE Euronext announced that it would be terminating elements of its clearing relationship with LCH.Clearnet, instead establishing its own clearing arm.

The completion of the deal is expected by the fourth quarter of 2012.

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a WatersTechnology account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: