LSE/Deutsche Boerse merger blocked by European Commission

Fears over competition

The European Commission has formally blocked the proposed merger of the London Stock Exchange with German exchange Deutsche Boerse on "competition concerns".

According to the Financial Times, the deal was formally blocked over issues surrounding market concentration in fixed income clearing. Margrethe Vestager, EU competition regulator, said the deal would have created a 'de facto monopoly' in fixed income instruments. "As the parties failed to offer the remedies required to address our competition concerns, the Commission has decided to prohibit the merger," she said. Deutsche Boerse and LSE warn of 1,250 job cuts following merger LSE had already agreed to sell its French clearing house to stem competition fears in repo markets. ...