Shares in the London Stock Exchange surge to a record high as it buys data firm Refinitiv in £22bn mega-deal
- The LSE is buying Refinitiv in a bid to bulk up and take on Wall Street rivals
- But the takeover is likely to face close scrutiny from competition authorities
- Traders were delighted at the move, sending LSE shares up 15.3 per cent
Shares in the London Stock Exchange surged to a record high after it unveiled a £22 billion mega-deal.
The LSE is buying financial data business Refinitiv in a bid to bulk up and take on Wall Street rivals.
But the takeover is likely to face close scrutiny from competition authorities.
Shares in the London Stock Exchange surged to a record high after it unveiled a £22 billion mega-deal
Traders were delighted at the move, sending LSE shares up 15.3 per cent, or 870p, to a record closing price of 6542p and adding £3 billion to its value.
Refinitiv is one of the world’s biggest providers of data such as share price information for traders.
It was previously owned by financial news company Thomson Reuters but was spun off as a separate company last year, with private equity business Blackstone taking a 55 per cent stake and Reuters holding the rest of the stock.
The acquisition by LSE will create a behemoth with turnover of £6 billion a year and is a coup for boss David Schwimmer.
It will be the only real rival to data company Bloomberg. Arnaud Giblat, of research firm Exane, said the deal could push LSE earnings up by as much as 30 per cent.
However, competition watchdogs in London and Brussels are likely to launch an investigation within days examining whether the deal could concentrate too much power in the hands of one company.
It could even lead to the plans being blocked completely.
However, Berenberg analyst Chris Turner said that this was unlikely because regulators have rarely intervened in data company tie-ups before.
He said: ‘European competition rules are generally supportive of consolidation in the information services space.’
LSE has been one of the best performers in the FTSE 100 over the past two decades.
Shares are up 1,563 per cent since 2001, meaning that excluding dividends, an investor who put in £1,000 at the time would now have £15,630.