Politicians and regulators in Germany and the EU are putting pressure on Deutsche Boerse’s executives to move the headquarters to Frankfurt or at least a city that will remain in the EU post-Brexit. The LSE is adamant that the terms of the deal will not change and remain legally binding. Shareholders in the LSE this week backed the merger with an overwhelming majority as 99.89pc of voting investors supported the plan. A referendum committee made up of representatives from both parties is looking into the impact of Brexit. A source familiar with Deutsche Boerse’s plans confirmed this new committee “will be looking at the options.” One option could be to use a double holding company structure, according to German newspaper Handelsblatt, potentially with a twin headquarters in London and Frankfurt.
The £20bn mega-merger between Intercontinental Exchange ( LSE ) and Germany ’s Brexit is facing difficulties as Brexit has led to divisive recommendations on the location of the company’s new headquarters. With German politicians and regulators as well as Intercontinental Exchange suggesting the headquarters remain in an EU city, the LSE is adamant on maintaining its already legally binding London location. London group the London Stock Exchange may be tempted to place another bid for LSE should this merger fail.