The ongoing push of exchanges into the data business appears to be accelerating. In what could be the biggest M&A deal in the intermediary sector this year, the London Stock Exchange is said to be pursuing a deal to purchase Refinitiv.
Press speculations over the weekend were confirmed by the LSE this morning as the company noted that it is in discussions to acquire Refinitiv. The deal is to be executed with the help of a consortium of investment funds affiliated with Blackstone and Thomson Reuters, which is holding a significant stake in the market data giant.
The possible acquisition could be due for a significant and lengthy review by anti-trust authorities, however. The consortium includes an affiliate of Canada Pension Plan Investment Board, an affiliate of GIC Special Investments Pte. Ltd and the above-mentioned consortium of co-investors around Blackstone.
“There can be no certainty that discussions between the parties will progress or that a transaction will be forthcoming,” a statement from the LSE reads.
An M&A Deal Worth $27 billion
The LSE plans to issue additional shares to complete the deal, valued at approximately US$27 billion. The stocks will be issued as consideration in full for Refinitiv’s equity value after an adjustment for the target company’s debt and other adjustments.
“The parties anticipate that the transaction would result in the Refinitiv Shareholders holding an approximately 37 percent stake in the enlarged group and less than 30 percent of the total voting rights of LSEG,” the LSE elaborated in a statement.