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US Watchdog Signs Off On LSE’s $27B Refinitiv Takeover

 |  March 16, 2020

London Exchange’s (LSE) parent company has secured a regulatory approval from a US government panel for its proposed US$27 billion acquisition of financial data provider Refinitiv. 

The Committee on Foreign Investment in the United States (CFIUS) stated Monday, March 16,  the takeover doesn’t raise any national security concerns, which clears yet another hurdle for the all-stock deal to buy the former financial and risk business of Thomson Reuters, which was revealed in August.

The UK’s Financial Conduct Authority (FCA) regulator gave the purchase offer’s circular its backing in November, and LSE’s shareholders also have overwhelmingly voted in favor of the institution’s planned buyout that will put them in competition with giants like Bloomberg.

The London Stock Exchange said in its statement that it expects the deal to close in the second half of 2020. However, the bourse operator still needs to secure more approvals and antitrust clearances as regulators are likely to scrutinize the transaction and its potential impact on market data costs.

European competition authorities, which had previously proved to be an obstacle for cross-border alliances, are expected to vote on LSE’s move to acquire Refinitiv “around the summer,” LSE stated in January.

Back in 2017, antitrust regulators blocked London Stock Exchange’s £21 billion merger with Deutsche Boerse, citing monopoly concerns from combining Europe’s two largest stock exchange operators.

Full Content: New York Times

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