1 Min Read
Jan 3 (Reuters) - Euronext said it has offered 510 million euros ($533.92 million) to buy the London Stock Exchange's (LSE) French clearing business, helping clear the way for LSE Group's proposed $28 billion merger with Deutsche Boerse.
LSE Group and LCH Group Limited confirmed that the companies have agreed on the terms of Euronext's all-cash offer.
The European Commission had stated its objections to the LSE's merger with Deutsche Boerse in December, but outlined fewer concerns than in its first letter sent to both exchange operators in September. Its concerns were focused on the clearing of derivatives contracts.
Clearing has become a major issue since global reforms introduced after the 2007-09 financial crisis mean banks must clear the bulk of their derivatives trades to make them safer and more transparent. ($1 = 0.9552 euros) (Reporting by Sanjeeban Sarkar and Vidya L Nathan in Bengaluru, editing by Louise Heavens)