Bundeskartellamt clears Deutsche Börse / London Stock Exchange merger
28.06.2005
The Bundeskartellamt has cleared the merger of Deutsche Börse AG (DBAG) and London Stock Exchange plc (LSE).
The planned takeover was notified to the Bundeskartellamt on 14 January 2005. The companies maintained the notification although DBAG had meanwhile withdrawn its takeover bid.
The examination of the concentration project showed that the activities of the parties to the merger overlapped mostly in the sector of stock exchange infrastructure for equities trading. However, a deterioration of the competitive landscape is not to be expected in this sector. No market share additions will occur in the sector of listing services or in the organisation of stock exchange dealings, as the participating parties are active in separate geographic markets. Furthermore it is not to be expected that potential competition will be affected as market entry barriers to other national stock exchange markets are high. Particularly decisive in this respect is the liquidity of equities which is highest at the respective equities’ home stock exchange. Finally, DBAG’s vertical market position in Germany will not be strengthened by a possible acquisition of the LSE.
The UK Competition Commission is currently examining the impact of the proposed acquisition in the United Kingdom.