Market Cap:
$273.2B
BTC Dominance:
67.82%
btc:
$10385.88
eth:
$194.20
xrp:
$0.28
Advertise
Cryptocurrency

London Stock Exchange acquires Refinitiv for £22bn

Redwan Eid | Aug. 1, 2019
London Stock Exchange acquires Refinitiv for £22bn

August 1, 2019, | AtoZ MarketsFor a $27bn, the London Stock Exchange has agreed a deal to buy the financial information provider Refinitiv, in a move to limit the market data price hikes.

As per The Guardian, “The all-share deal will allow LSE to take control of Refinitiv, whose Eikon terminals on trading floors challenge those provided by Bloomberg, from a consortium led by Blackstone and including Thomson Reuters, which owns the Reuters news service.”

David Schwimmer, the chief executive of LSEG, described the deal as “transformational”, adding that it is “It is a rare and compelling opportunity to combine two world class businesses and create a global financial infrastructure leader. We will continue to be a global business headquartered in the UK.”

LSEG’s stockmarket value spiked to of £24bn directly!

Soon as the deal of the acquisition was being finalized, the LSEG shares rose 5% to £69.50, making the stockmarket value spike to of £24bn, with the LSEG’s share rising by more than 60% over the last year, amid expectations of increasing the LSEG’s presence in the U.S with the new deal.

According to Bloomberg, “Refinitiv’s current owners, a consortium of investors led by Blackstone as well as Thomson Reuters, wouldn’t be able to sell any stock until two years after the deal closes, the people said, asking not to be identified because the terms are private. That could take at least a year. After that, the owners would be allowed to sell a set number of shares in phases over the next couple of years, delaying a full exit for about five years, they said.”

On his turn, the finance chief, David Warren, giving highlights on the upcoming new strategy in managing the newly-bought Refinitiv, the company will cut down on jobs, as part of £350m of cost savings over the next five years, refusing to give further details.

“I can’t quantify them; it would be too early to do that […] There will be employee related efficiencies.”

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.