Deutsche Boerse exec warns US and China will dominate if London Stock Exchange merger is blocked

 
William Turvill
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The London Stock Exchange and Deutsche Boerse agreed a £21bn merger in March (Source: Getty)

A Deutsche Boerse executive has warned rival firms from the US and China will dominate if the German’s merger with the London Stock Exchange falls through.

The exchanges are expecting a statement of objections to their tie-up from the European Commission next month and analysts remain doubtful the deal will complete.

Read more: Stock exchanges expect Brussels objections to deal before Christmas sprouts

If the deal fails, Deutsche Boerse chief financial officer Gregor Pottmeyer predicted the Intercontinental Exchange (ICE) will start “knocking on London’s door again”.

ICE, which owns the New York Stock Exchange, was considering making a rival bid for the London Stock Exchange after its merger announcement with Deutsche Boerse, but pulled out in May.

And he said Deutsche Boerse could attract takeover interest from the Chicago Mercantile Exchange (CME).

Read more: London Stock Exchange seeks to wrap up LCH sale as regulatory battle looms

Speaking at a conference, attended by Reuters, Pottmeyer said the merger was necessary after competitors in other regions had shown interest in taking the firms over.

“Otherwise the Americans will sit down together with the Chinese to regulate the market,” he was quoted as saying.

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