The London Stock Exchange’s proposed merger with Deutsche Boerse was given a boost today, with shareholder approval on the German side surpassing 50 per cent, meaning it is highly likely to receive the necessary level of acceptance.
Earlier this week, Deutsche Boerse lowered the shareholder approval threshold from 75 per cent to 60 per cent and extended the deadline for acceptance by two weeks.
The German exchange cited concerns that the original threshold may have proven difficult to cross because up to 15 per cent of its shares are held by index funds. These would not be able to accept the offer until the minimum level of acceptances had been reached.
Now that the 50 per cent approval mark has been passed, Dax index funds are able to tender their shares.
The London Stock Exchange won 99.89 per cent approval among its shareholders for the deal last week.
Deutsche Boerse said on Wednesday afternoon that around 53 per cent of its shares had been tendered, in support of the deal.
Meanwhile, Bundesbank board member Andreas Dombret today gave his backing to the deal after the UK’s Brexit vote.
“Regarding the merger between Deutsche Boerse and London Stock Exchange, the referendum outcome has even strengthened the economic rationale,” Dombret said at a Frankfurt conference reported on by Reuters.
“Once the UK has left the European Union, bridges between both economies will be more important than ever before.
“The announced merger of LSE and Deutsche Boerse has the potential to become such a bridge.”