BlackRock: Merger of London and German stock exchanges makes European markets healthier
BlackRock is the second biggest shareholder in Deutsche Bourse and London Stock Exchange
Blackrock, the second-largest shareholder in both Deutsche Boerse and London Stock Exchange Group (LSEG), publicly voiced its support for the US$28 billion merger of the two European exchanges as key regulatory decisions on the tie-up loom.
Deutsche Boerse and LSEG have been working to overcome regulatory hurdles holding up the merger and looking to appease antitrust regulators. LSEG agreed this month to sell its French clearing business to Euronext.
“Sceptics of this merger must consider the need for stronger capital markets in Europe - as well as the ways the alliance could in fact benefit competition by deepening access to capital on the continent,” Blackrock Chairman Laurence Fink said in a speech at a Deutsche Boerse reception on Monday.
“Deutsche Boerse itself has taken an important step towards healthier markets through the proposed merger with LSE.”
The German state of Hesse, which has the authority to veto a merger of the two exchange operators, will host a summit on Tuesday to review the tie-up.
Britain’s preparations to trigger divorce talks with the European Union have put a question mark over the deal because a Brexit would place London, Europe’s financial capital and planned headquarters of the new group, outside the bloc.