By Simon Miller
The London Stock Exchange (LSEG) has agreed terms to takeover LCH Clearnet it was announced this morning.
LCH Clearnet Shareholders will receive €20 (£16.7) per share acquired and LSEG will become the majority owner of LCH Clearnet at 60%.
The £386m takeover sees LSEG diversify as regulation is expected to come in forcing all over-the-counter derivatives on to exchanges and settled through clearing houses.
Commenting on today’s announcement, Chris Gibson-Smith, chairman of LSEG said: “Strategically, structurally and financially this is a highly compelling transaction. At a time when experience, stability and trust count for so much, we are delighted to be partnering with LCH Clearnet as global leaders in market infrastructure."
He added: "Together, we have secured the Enlarged Group’s long term role in the operation of international capital markets and we look forward to continuing to successfully deliver on our diversification strategy and to drive shareholder value.”
Jacques Aigrain, chairman of LCH Clearnet added: “We are pleased to partner with LSEG which has a shared philosophy of horizontal architecture and close partnership with customers. We look forward to working together to build on our respective strengths as we seek to deliver one of the premier global multi-asset, multi-venue clearing and risk management businesses.”