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Euronext makes irrevocable cash offer to buy LCH.Clearnet

First Published 3rd January 2017

Euronext has signed a binding offer and been granted exclusivity to acquire 100% of the share capital and voting rights of LCH.Clearnet. Acquisition price to be €510m.

Stéphane Boujnah, Euronext

Stéphane Boujnah, Euronext

Further to the announcement by Deutsche Börse of 28 September 2016 that the London Stock Exchange Group and LCH.Clearnet Group are exploring the sale of LCH.Clearnet in order to address European Commission anti-trust concerns, LSEG and LCH Group have confirmed that they have received an irrevocable all-cash offer from Euronext to purchase LCH.Clearnet.

LSEG and LCH Group also confirmed that the terms and conditions on which any transaction would take place if the Put Option were exercised, including the all-cash consideration of €510 million (subject to customary adjustments), have been agreed with Euronext.

A sale of LCH.Clearnet would be subject to review and approval by the European Commission in connection with the recommended merger of DBAG and LSEG , the completion of LCH.Clearnet's works council consultation process, the approval by the shareholders meeting of Euronext and other customary conditions including relevant regulatory approvals. It would also be conditional on the successful closing of the Merger.

Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext said: "The potential acquisition of Clearnet represents an opportunity for Euronext to achieve revenue growth and diversification. We will be in a position to provide our existing and future clients with a pan-European, fully integrated trading and post-trade platform."