London Stock Exchange may sell its Italian business to appease regulators over its £21bn takeover of Refinitiv
The London Stock Exchange (LSE) may sell its Italian business in a bid to appease regulators over its £21billion takeover of Refinitiv.
The EU competition regulator is conducting an in-depth investigation into the deal amid concerns it would leave the LSE with a massive market share in the trading of European government bonds.
Negotiations: The LSE said it is in ‘exploratory discussions’ which could result in the sale of part or all of its Italian exchange
Refinitiv, a provider of financial market data and infrastructure, also owns Tradeweb, a market leader in bond sales.
The LSE said it is in ‘exploratory discussions’ which could result in the sale of part or all of its Italian exchange, the Borsa Italiana, which it bought for £1.4billion in 2007.
The plans to take over Refinitiv, which is 45 per cent owned by Thomson Reuters, will broaden its trading business and make it a major distributor and creator of market data, a profitable and fast growing sector.
In its half-year results the LSE reported a 4 per cent rise in revenues to £1.1billion for the six months to the end of June, leaving profits almost unchanged at £362m.
Shares rose 1.7 per cent.