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Job cuts in LSE-Deutsche Boerse merger

Do Not UseDo Not Use 1/06/2016
London Stock Exchange sign © Getty Images London Stock Exchange sign

The London Stock Exchange Group (LSE) has said its forthcoming merger with Deutsche Boerse could lead to as many as 1,250 job losses.

The tie-up, announced in March, is expected to be completed by the end of this year or early 2017.

It will create one of the world's largest exchange companies with a combined value of about £21bn.

Each of the two companies has more than 5,000 staff.

The LSE said its shareholders would be asked to approve the merger on 4 July.

It added that the deal was expected to produce €250m in annual cost savings in five years, with €160m of those savings achieved by year three.

Cost savings

If the deal goes ahead, LSE shareholders will own 45.6% of the new holding company, while Deutsche Boerse shareholders will own 54.4%.

The two companies said together they should be able to make cost savings of €450m (£354m) a year - about 20% of the combined group's operating costs of €2.2bn last year.

The LSE group already owns Milan-based Borsa Italiana.

The newly merged company will keep both the London and Frankfurt headquarters. The new holding company, UK TopCo, will be incorporated in the UK.

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