London Stock Exchange-Deutsche Boerse deal expected to be formally blocked by European Commission shortly

 
William Turvill
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EC Berlaymont Headquarters Unveiled In Brussels
The European Commission has an official deadline of 3 April to rule on the deal (Source: Getty)

The European Commission is expected to formally block the London Stock Exchange-Deutsche Boerse deal before the end of this month.

The tie-up has been on the ropes since 26 February, when the London Stock Exchange indicated it was unwilling to meet a European Commission demand for it to divest its Italian trading business MTS.

Read more: MTS and the London Stock Exchange deal: How a straw broke the camel's back

Sources close to the deal are expecting the body to veto the deal, and a formal notice is expected either this week or next.

Next Wednesday, 29 March, has been noted as a potential date for a decision.

The official deadline for the European Commission to make a ruling on the £21bn merger is 3 April.

Read more: German minister accuses London Stock Exchange of "derailing" merger

The London Stock Exchange and Deutsche Boerse agreed the terms of their deal in March 2016.

It marked the third formal attempt for the companies to merge.

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