R.Unido / Italy.- The London Stock Exchange is considering disposing of the Milan Stock Exchange to ensure the purchase of Refinitiv


London Stock Exchange Group (LSEG), manager among others of the London Stock Exchange, has announced that it is studying the possibility of selling part or all of its interests in the Milan Stock Exchange as a measure to facilitate approval by the authorities of Competition of the European Union of the acquisition of the provider of financial data Refinitiv for 27,000 million dollars (22,787 million euros).

In the context of the Phase II review by the European Commission, LSEG has started “exploratory discussions” that may result in a sale of its interests in MTS, the Milan Stock Exchange bond trading platform, “or potentially in the group of the Borsa Italiana group “.

However, the British manager stressed that for the moment there can be no certainty that LSEG will decide to proceed with a transaction related to any of these businesses.

The European Commission decided on June 22 to open an in-depth investigation into the purchase of Refinitiv, the company responsible for the Thomson Reuters financial information terminals by the London Stock Exchange Group (LSEG), suspecting that the operation could reduce the Competition in the marketing and settlement of various financial instruments and financial information products.

A year ago, LSEG reached a definitive agreement with the venture capital firm Blackstone and Thomson Reuters for the acquisition of Refinitiv, the company responsible for the agency’s financial information terminals, through an operation valued at $ 27 billion ($ 22,787 million). euros), including 12,500 million dollars (10,545 million euros) in debt.

On the other hand, the London stock manager reported that in the first half of 2020 it achieved an attributed net profit of 226 million pounds sterling (190 million euros), which represents a drop of 8.1% compared to its result in the same period of 2019, while its turnover grew between January and June by 8.3%, to 1,235 million pounds (1,042 million euros).

“The group has performed well financially and has demonstrated strong operational resilience,” said David Schwimmer, CEO of LSEG, during the presentation of the company’s accounts.

“We are making progress on the proposed transaction with Refinitiv, securing a series of regulatory approvals and engaging constructively with the authorities on the remaining permits,” added the LSEG chief executive, noting that the firm is confident of closing the transaction “before the end of the year or early 2021. “