EU: Deutsche Boerse works council slams LSE merger deal terms

Deutsche Boerse employees have sharply criticised the terms of a $30 billion merger agreed between the German exchange operator and the London Stock Exchange, urging that a planned holding company be based in Frankfurt.

“The planned constellation is not a merger of equals,” Deutsche Boerse’s works council, which represents the interest of employees, said in a statement aimed at shareholders seen by Reuters.

“Key corporate decisions will be made solely from London in the future; Frankfurt’s loss of significance is pre-programmed,” the works council said, adding that this would damage the German economy.

Deutsche Boerse’s management board and its supervisory board, on which employees are officially represented, have already given their unanimous backing to the merger.

However, the works council statement touches on points that are also of concern to local regulators, who are tasked with promoting the development of the Frankfurt exchange as a centre for equities trading and who have the power to block a merger.

Regulators are in touch with the works council as they review Deutsche Boerse’s merger application.

The council recommended Deutsche Boerse’s shareholders only approve the deal if the holding company is located in Frankfurt and remains overseen by the local financial market supervisor. These demands applied even more strongly in the event Britain were to vote to leave the European Union, the council said.

Britons vote in a referendum on June 23 on whether to remain in the 28-member bloc.

The works council also took aim at Deutsche Boerse Chief Executive Carsten Kengeter for concentrating exclusively on the deal with London and neglecting other possibilities.

Full Content: Daily Mail

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.