Wednesday

14th Nov 2018

Commission stops German-British stock merger

  • EU competition chief, Margrete Vestager, said the deal would have been bad for the European economy. (Photo: European Commission)

The European Commission has stopped a merger between the London Stock Exchange (LSE) and Deutsche Boerse, a Frankfurt-based stock exchange, on Wednesday (29 March).

EU competition commissioner Margrete Vestager said she prohibited the move, because it would hurt the European economy.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

"The European economy depends on well functioning financial markets. The whole economy benefits when businesses can raise money on competitive financial markets," she told a news conference. "The commission cannot allow the creation of monopolies, which would have happened in this case," she added.

The merger would have meant that all clearing houses in the EU would belong to the same owner. Clearing houses are the middlemen between sellers and buyers of stocks.

The block was widely expected, as LSE had refused to divest its majority stake in the Italian trading platform, MTS, which the commission had made a condition of the deal's approval.

"Instead, LSE submitted a very complicated offer at the last minute. The partners were not unable to demonstrate these measures would have been effective," Vestager said.

The merger would have given birth to one of the world's leading stock exchanges, valued at €24 billion.

Vestager denied that the prohibition had to do with the UK's decision to leave the EU. The UK ambassador to the EU is expected to hand in the official leaving notification at 1.30pm.

When asked about the danger of LSE falling outside the influence of the EU executive after Brexit, she said that ownership wasn't her concern - but the conditions on the EU market were.

The British and German stock markets had already tried, and failed, to merge in 2000 and 2005.

Italy defiant on budget on eve of EU deadline

Italy would be committing economic "suicide" if it fell in line with EU rules, its deputy leader has said, in a sign that Rome has little intention of bowing to pressure ahead of Tuesday's budget deadline.

Greek austerity violated right to health, says watchdog

Cuts in the Greek health care system, following the austerity cuts demanded in return for international bailouts, have violated the European Social Charter on the right to health, says Council of Europe's human rights commissioner, Dunja Mijatovic.

Analysis

Salvini is gambling with core voters' future in budget battle

Businesses in northern Italy are anxiously watching the standoff between the European Commission and the Italian government. They used to be the 'Northern League's' most important electorate - but the party's profile and priorities have changed.

EU commission eyes majority tax rules

The commission plans to address tax avoidance schemes in some EU states by shifting tax decisions away from unanimity to a majority system in what amounts to a long shot.

News in Brief

  1. EU's Tusk is Poland's most trusted politician
  2. Finland prepares to step in for Romania on EU presidency
  3. Trump threatens tariffs on EU wine
  4. US defence chief backs Nato amid 'EU army' calls
  5. Italy defies EU deadline on changing budget
  6. Report: FBI looking into Brexiteers Farage and Banks
  7. Italian journalist unions protest 5MS 'whores' jibe
  8. Czech PM's son alleges kidnap plot against his father

Stakeholder

An open China brings opportunities to Europe

Some 60 years ago, the first major World Fair after World War II was held in Brussels. Sixty years on, China International Import Expo (CIIE), the first world expo dedicated to expanding imports, will open in Shanghai, China.

Stakeholders' Highlights

  1. NORDIC COUNCIL OF MINISTERSTheresa May: “We will not be turning our backs on the Nordic region”
  2. International Partnership for Human RightsOpen letter to Emmanuel Macron ahead of Uzbek president's visit
  3. International Partnership for Human RightsRaising key human rights concerns during visit of Turkmenistan's foreign minister
  4. NORDIC COUNCIL OF MINISTERSState of the Nordic Region presented in Brussels
  5. NORDIC COUNCIL OF MINISTERSThe vital bioeconomy. New issue of “Sustainable Growth the Nordic Way” out now
  6. NORDIC COUNCIL OF MINISTERSThe Nordic gender effect goes international
  7. NORDIC COUNCIL OF MINISTERSPaula Lehtomaki from Finland elected as the Council's first female Secretary General
  8. NORDIC COUNCIL OF MINISTERSNordic design sets the stage at COP24, running a competition for sustainable chairs.
  9. Counter BalanceIn Kenya, a motorway funded by the European Investment Bank runs over roadside dwellers
  10. ACCACompany Law Package: Making the Best of Digital and Cross Border Mobility,
  11. International Partnership for Human RightsCivil Society Worried About Shortcomings in EU-Kyrgyzstan Human Rights Dialogue
  12. UNESDAThe European Soft Drinks Industry Supports over 1.7 Million Jobs

Latest News

  1. Knives out on all sides for draft Brexit deal
  2. Romania data chief defends forcing press to reveal sources
  3. EU to review animal welfare strategy
  4. Macron's 'European army': why is everyone talking about it?
  5. Merkel calls for 'real, true' EU army
  6. Italy defiant on budget on eve of EU deadline
  7. EU action on Hungary and Poland drowns in procedure
  8. EU unable to fully trace €1bn spent on refugees in Turkey

Join EUobserver

Support quality EU news

Join us