Sat, 27th Jul 2019
The London Stock Exchange Group is in discussions with Refinitiv about a deal that would create a global exchanges powerhouse, with access to a huge amount of data.
The proposed deal would see the London Stock Exchange Group purchase all, or a large part of Refinitiv, who were carved out of Thomson Reuters last year as a part of a deal with Blackstone. If the deal were to happen it would see the LSE become the biggest rival to Bloomberg as a news and data empire in the financial space.
According to some reports, news of a planned transaction could be announced as soon as next week, although a deal is by no means guaranteed. The LSE is valued at around £19.3 billion in total, with a net debt of £1 billion.
Refinitiv was valued at around $20 billion last year, and their Eikon terminals are some of the biggest rivals to Bloomberg. Refinitiv was acquired by a consortium led by Blackstone last year, and the proposals that are being discussed would see LSE pick up the data terminals and potentially the other aspects of the business, helping the LSE to become a far more diverse group, involved not just in derivatives and stocks, but also market data and analytics. This is a transformation that new chief executive David Schwimmer has been aiming for, in the hopes of helping the group remain strong even as the UK plans to step away from the EU, putting London’s role as a global financial centre in question.