London Stock Exchange Group and Deutsche Börse are in talks about a potential merger of equals between the two businesses creating a combined group worth nearly GBP20 billion ($29 billion) based on their closing stock prices Monday, the companies confirmed on Tuesday.
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The potential merger would be structured as an all-share merger of equals under a new holding company. Under the potential merger terms, London Stock Exchange shareholders would receive 0.4421 new shares in exchange for each London Stock Exchange share and Deutsche Börse shareholders would be entitled to receive one new share in exchange for each Deutsche Börse share.
The companies anticipate that Deutsche Börse shareholders would hold 54.4% and London Stock Exchange shareholders would hold 45.6% of the issued share capital of the combined group.
Write to Tapan Panchal at Tapan.Panchal@wsj.com