Jan 3 Euronext said it has offered 510
million euros ($533.92 million) to buy the London Stock
Exchange's (LSE) French clearing business, helping clear
the way for LSE Group's proposed $28 billion merger with
LSE Group and LCH Group Limited confirmed that the companies
have agreed on the terms of Euronext's all-cash offer.
The European Commission had stated its objections to the
LSE's merger with Deutsche Boerse in December, but outlined
fewer concerns than in its first letter sent to both exchange
operators in September. Its concerns were focused on the
clearing of derivatives contracts.
Clearing has become a major issue since global reforms
introduced after the 2007-09 financial crisis mean banks must
clear the bulk of their derivatives trades to make them safer
and more transparent.
($1 = 0.9552 euros)
(Reporting by Sanjeeban Sarkar and Vidya L Nathan in Bengaluru,
editing by Louise Heavens)