London Stock Exchange Closes Refinitiv Acquisition Deal

The London Stock Exchange Group (LSEG) has completed the acquisition deal of financial data provider Refinitv on Thursday after one-and-a-half years of regulatory hurdles.

The stock market operator confirmed that LSEG shares have been issued to Thomson Reuters and Blackstone, the previous owners of the major financial data providing platform. It further detailed that Refinitiv shareholders obtained 37 percent economic interest and 27 percent voting interest in LSEG.

“Completion of the acquisition of Refinitiv marks an important milestone in LSEG’s history,” LSEG chief executive, David Schwimmer said on the acquisition. “This transformational transaction brings together two highly complementary global businesses with a shared commitment to an Open Access philosophy, working in partnership with customers.”

A Landmark Deal for LSE

Both LSEG and Refinitiv agreed to the $27 billion acquisition deal in August 2019. Though cleared in the United States, the European financial market regulator raised antitrust concerns over the deal because of its complexity and size.

The London-based stock exchange operator had to liquidate its market holdings by selling its stake in the leading Italian bourse to Euronext for $5 billion. Thursday’s closure was expected as the European Commission officially cleared the deal earlier this month.

In a separate media release, Thomson Reuters detailed that it now indirectly owns 82.5 million LSEG shares, which has a market value of $9.8 billion. These LSEG shares are held by a joint entity owned by Blackstone’s consortium and Thomson Reuters.

Both the companies agreed to a lock-up period for LSEG shares until January 2023. Though Thomson Reuters previously anticipated the transaction to be tax-free, around $700 million had to be paid at the deal closure.

“LSEG’s combination with Refinitiv creates a global leader in financial data and infrastructure. We are excited to be a long term partner to LSEG as the company continues to grow and innovate,” Blackstone’s Martin Brand added.

(Photo: Wikimedia Commons)

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