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London Stock Exchange Confirms Negotiations to Purchase Refinitiv for $ 27 Billion



The London Stock Exchange Group has confirmed it is in advanced negotiations to buy Refinitiv in a $ 27 billion deal that will turn it into a global exchange and database.

The statement came after the talks between the parties were revealed by the Financial Times earlier Friday.

Thomson Reuters's Refinitiv deal only last year in a deal with Blackstone will turn LSE into a major competitor of the financial news and empire with billionaire Michael Bloomberg, with an annual total revenue of over £ 6 billion.

In his statement after midnight in London, LSE said he would pay the whole deal with the issue of new shares. This will mean that Refinitiv's shareholders hold about 37% of the merged group, although they will have less than 30% of its voting rights.

LSE closed on Friday with a market value of about 1

9.3 billion pounds and a net debt of about 1 billion pounds.

Refinitiv, whose Eikon terminals are the main competitor of the Bloomberg financial centers' retail space, was estimated at $ 20 billion last year. The group was acquired by a private consortium of shares led by Blackstone, which acquired the bulk of the Thomson Reuters business, the news and data group.

The consortium has invested about $ 13.5 billion in the company's stock in this deal. Using this figure and the $ 27 billion value of the enterprise, announced by LSE, that means LSE plans to issue about $ 13.5 billion in new shares or close to £ 11 billion in what will be one of the best- big stocks on the London market for years. 19659002] The deal will turn LSE, which is best known for its stock exchanges and clearing derivatives, into a more diversified market data and analysis analyst with David Schwimmer, a former Goldman Sachs banker.

Mr Schwimmer was appointed LSE Chief Executive Officer last April after a long-term search to replace Xavier Rolet, the Frenchman who finished his eight-year post-crisis management job.

"The combined business will create a leading UK headquarters, a global provider of financial market infrastructure with significant capabilities for capital markets with multiple assets, a leading data and analysis business, and a broad after-market supply well positioned for future growth in developing landscape, "said LSE.

He added that his goal is to achieve annual savings of more than 350 million pounds within five years of the deal. Don Robert, chair of the LSE, and David Warren, Chief Financial Officer, must retain their role.

The talks come at a time when London's role as a global financial center is facing issues, with the UK preparing to withdraw from the EU with Boris Johnson's new prime minister. Only 18 months ago, the Blackstone-led consortium including the Canadian Investment Plan Council and the GIC Singapore Fund agreed to buy a 55% stake in Thomson Reuters' financial and risk division, the latter retaining the minority your division in the division and other units.

The consortium agreed to pay Reuters News a minimum of $ 325 million a year for 30 years as part of the deal.

Since then, investors have rebranded the Refinitiv business and launched a cost-cutting campaign to make businesses more efficient.

Thomson Reuters shares, which own a 45% stake in Refinitiv's private ownership, jumped 4.3% in New York trading on the FT report.

Refinitiv was expected to sell assets after Blackstone took control of the company. In the previous months, he had negotiated with Deutsche Börse to sell his FXall foreign exchange business, an electronic trading platform worth about $ 3.5 billion. Deutsche Börse recently said it is still in talks. In its statement, the LSE reported that Refinitiv reported 6.3 billion dollars in net revenue and profit before interest, taxes, depreciation and amortization to the tune of 1.6 billion dollars. LSE in the autumn of 2017

The former banker spent more than 4 billion pounds on data acquisition and clearing companies, responding to the evolution of markets after the financial crisis.

Among the best-known deals were the purchase of Russell Investments and FTSE International compilers, of which 50% already own.

He also bought a controlling stake in the LCH Clearing House. Most importantly, Mr. Rollet attempted to merge with the main European competitor of LSE, Deutsche Börse, which collapsed in March 2017.

Refinitiv will strengthen LSE's existing data and analytical proposals that include Mergent , a service providing information about private companies, and the XTF, which focuses on stock traded funds. The Group also owns The Yield Book, a fixed income indexing service.

Exchange groups in the United States and Europe have accumulated their data and analysis offerings in recent years as stock and bond trading has become more electronic by relying more quickly on data sources for which they can charge a premium .


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