The German politician responsible for approving Deutsche Boerse’s merger with the London Stock Exchange has said he requires “further information” on the deal.
Tarek Al-Wazir, economy minister for the State of Hesse, where Deutsche Boerse is based in Frankfurt, made the statement after the exchange houses published a shareholder prospectus for the deal yesterday.
Al-Wazir’s office has the power to block the merger, which shareholders will be asked to approve in July. The deal is understood to be facing scrutiny from around 40 regulators across the world.
Al-Wazir said in a statement today: “The assessment requires further information.”
He added: “The EU Commission's anti-trust decision could also prompt relevant changes in the merger plans.”
Sources close to the situation told Reuters it was not clear whether the ministry would approve the deal.
The department was concerned that it could lose influence over the merged entity, which would have its holding company headquartered in London, particularly if the merged company itself became a takeover target.
German politicians based in Hesse have previously condemned the fact the merged entity would have its headquarters in London.
Ulrich Caspar told City A.M. in April that the merged company could "under no circumstances" be based in the London rather than Frankfurt if the UK votes for a Brexit.
Sources close to the deal then dismissed the suggestion the headquarters could be based away from London. One said: "The location of UK TopCo in London was a non-negotiable element of the merger and would not be revisited in the event of a Brexit vote."