LSE share price: Exchange group poised for deal with rival

The London Stock Exchange Group (LON:LSE) may be considering a deal with a rival, The Wall Street Journal has reported. The company’s chief executive, Xavier Rolet, told the newspaper in an exclusive interview today that LSE was likely to do a deal with one of the other big four Western exchanges groups within the next couple of years.

Rolet said he stood by his 2011 predictions of consolidation among the top exchanges groups, which also include CME Group Inc, Intercontinental Exchange Inc. and Deutsche Boerse AG, within five years. “Maybe the timing will be wrong. But I still have a year and a half to go,” he remarked. Rolet added that that attempts by the other three companies to merge had been blocked by competition authorities because they all own big derivatives exchanges, implying that a merger would likely have to involve the LSE, which does not.
Rolet’s comments come after a period of significant change for the LSE including the $2.7 billion acquisition of Frank Russell Company and the recent sale by Borse Dubai of a 17.4 percent stake in the exchange group. LSE is also in the process of trying to sell the asset management arm of Russell — a move, which could raise about $1.5 billion, “giving it the ability to pursue M&A,” according to Philip Middleton, an analyst at Bank of America Merrill Lynch.
In separate LSE news, Reuters today reported that the group had named Caroline O’Shaughnessy as the global head of sales and marketing in its information services business and Brian Rosenberg as managing director for North America sales.
LSE’s share price has been subdued so far today. As of 14:28 BST, the stock was trading 0.59 percent lower at 2,537.00p.
As of 15:32 BST, Wednesday, 22 April, London Stock Exchange Group Plc share price is 2,532.50p.

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