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France raises concerns over proposed LSE-Deutsche Boerse deal

Published 29/02/2016, 15:21
© Reuters. The German share prize index board and the trading room of Frankfurt's stock exchange are photographed with a circular fisheye lens during afternoon trading session in Frankfurt
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BRUSSELS (Reuters) - The proposed merger of Europe's two biggest financial market operators, London Stock Exchange Group (L:LSE) and Deutsche Boerse (DE:DB1Gn), poses competition issues and should also be assessed with regard to the possibility of Britain leaving the European Union, France's economy minister said on Monday.

A merged group worth almost $30 billion would be similar in scale to the U.S. exchange ICE (N:ICE), which has taken huge slices of Europe's derivatives markets, and would leave smaller European competitors such as Euronext Paris (PA:ENX) far behind.

"We will assess the consequences in strategic terms for Paris's financial centre," France's Economy Minister Emmanuel Macron told reporters in Brussels.

On his way to a meeting with EU competition commissioner Margrethe Vestager, he said that the proposed deal raised competition issues.

Macron, a former investment banker, also raised doubts about the impact on the merged group if Britain elected to leave the European Union in the national referendum which is expected to take place in June.

"I think we should assess the possible consequences of a Brexit on such a merger," he said, conceding that it is a matter of debate mostly for shareholders.

© Reuters. The German share prize index board and the trading room of Frankfurt's stock exchange are photographed with a circular fisheye lens during afternoon trading session in Frankfurt

On Friday, LSE and Deutsche Boerse said that the merged group would prosper regardless of Britain leaving the EU

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