UK: LSE merger with Deutsche Börse likely to result in 1250 job cuts

London Stock Exchange Group said its planned $30 billion merger with German rival Deutsche Boerse could initially cut 1,250 jobs across the combined group and should eventually lead to 250 million euros in extra revenue a year.

LSE, which agreed in March to merge with Deutsche Boerse in an all-share deal to create the world’s biggest exchanges group by income, said it expected to achieve the full revenue benefits in the fifth year after the deal is completed.

The company, which owns Borsa Italiana and the London Stock Exchange, said about 160 million euros per year would come by the third year after the deal closes.

The revenue benefits would come from the combination of the groups’ index and information services businesses including the FTSE Russell and STOXX indexes.

They would also come from the development of trading and clearing products, LSE said. LSE reiterated its expectation for cost savings of 450 million euros annually from the third year.

The combined group, whose name is yet to be announced, currently employs 8,000 people and net job losses after new roles are created would be 700, or under 10 percent of the workforce, with no compulsory redundancies in Germany.

Full Content: The Guardian

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