London Stock Exchange Group chief executive Xavier Rolet to step down following Deutsche Boerse proposed merger completion, and Carsten Kengeter to be boss of newly combined group

 
Hayley Kirton
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The two exchanges revealed they were in merger talks on Tuesday (Source: Getty)

Current chief executive of the London Stock Exchange Group (LSE) Xavier Rolet will step down from his role once the proposed merger with Deutsche Boerse completes.

In an announcement about the proposed merger this morning, the exchanges revealed that the newly combined company would be domiciled in the UK, with LSE in London and Deutsche Boerse in Frankfurt as subsidiaries and headquarters in both locations.

Carsten Kengeter, who took up the role of chief executive of Deutsche Boerse last June, will be chief executive and executive director of the new group.

The board of the newly merged company will also include Donald Brydon as chairman, Joachim Faber as deputy chairman and senior independent director, and David Warren as finance chief and executive director.

Brydon is the current chairman of LSE, Faber is the current chairman of Deutsche Boerse and Warren is the current finance chief of LSE.

A referendum committee has also been set up to advise on what effect the UK voting to leave the EU on 23 June could have on the proposed merger.

The exchanges were revealed to be in merger talks on Tuesday, which is the third time a tie-up between the two has been mooted.

Commenting on Rolet's departure, Brydon said:

Xavier has been the architect of LSEG's considerable value creation and has offered to retire in order to ensure the successful creation of the new group. The Board of LSEG is indebted to Xavier for this action which is consistent with his focus on putting the interests of shareholders and clients first.

Rolet has agreed to be available to the new board of the merged company for assistance.

Share price in LSE dipped sharply after the announcement was made, but recovered soon after to be trading up 1.4 per cent at 2,672p at shortly before 10am London time.

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