Stock Exchange confirms merger talks
The London Stock Exchange has confirmed it is in merger talks with its Frankfurt rival.
The confirmation, which follows widespread speculation, emerged as former telecoms industry regulator Don Cruickshank was unveiled as the new chairman of the UK exchange.
Talks have been prompted by increasing competition between European exchanges, driven by technological advances and globalisation of trading.
In a statement London said: ‘The London Stock Exchange confirms that it is aiming to achieve rationalisation of securities trading across Europe and internationally, to meet the needs of users who naturally want the simplest, most straightforward and cheapest way to deal in shares and international companies across the world.
‘Discussions are taking place with Deutsche Boerse (Frankfurt) to see if a merger between the two exchanges can be the first major step in this process.’
However, it said: ‘London’s leading position in the trading of international securities gives it a pivotal role in the realignment of exchanges and it is not yet clear that a merger with Deutsche Boerse can be agreed.’
Cruickshank will join the board today and will take over from Sir John Kemp-Welch as chairman on 25 May, following a board meeting.