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EU: Deutsche Boerse and LSE to announce merger next week

By  |  March 8, 2016

Deutsche Boerse and the London Stock Exchange are targeting cost savings of more than 300 million euros, once a merger of the two exchanges is completed, three people familiar with the matter said on Tuesday.

Deutsche Boerse and LSE are expected to officially announce a merger agreement next week, two of the sources said.

“Cost synergies will clearly exceed the 300 million euros targeted in the Deutsche Boerse-NYSE merger in 2011,” one of the sources said, adding that Deutsche Boerse’s and LSE’s businesses are much more complementary.

The cost savings — mainly in back office and information technology functions — will fully pan out after several years, the sources said.

“In the beginning, the companies will continue to run all platforms and only over time shift business to the better platform or the better technology,” one of the sources said.

Full content: The Financial Times

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