LSE expects final approval for Refinitiv takeover

“The Group has received 16 merger control clearances to date and good progress has been made in relation to outstanding jurisdictions,” the exchange said in a statement.

The LSE said it has published a prospectus and intends to re-apply for admission on its own market as the Refinitiv deal constitutes a reverse takeover under UK listing rules.

“All remaining merger control and regulatory approvals are expected to enable completion of the transaction and admission in Q1 2021,” the LSE said in a statement.

European Union competition officials are due to rule on the takeover next month, and Reuters has reported that the deal is set to get the green light in Brussels. Reuters parent Thomson Reuters owns 45 per cent of Refinitiv.

Bankers, lawyers and other advisers working on the takeover are set to earn $1.1 billion in fees, in excess of most comparable deals. The costs were detailed in an updated prospectus released on Wednesday. The exchange is being advised by Goldman Sachs, Morgan Stanley, Robey Warshaw, Barclays and RBC Capital Markets, and lawyers led by Freshfields Bruckhaus Deringer. Evercore, Canson Capital Partners and Jefferies are among those acting for Refinitiv. The LSE said that £358 million of the deal costs would be for services including financial advisory, legal work and accounting. This is up from £281 million in costs that the LSE reported a year ago. A further £477 million will go to financing costs related to the deal, which will see the issuance of new shares and debt to pay Refinitiv’s owners, it added.

The LSE is buying Refinitiv from a private equity consortium led by Blackstone, the private equity group, which will hold a 37 per cent stake in the enlarged company once the deal is completed. 

The takeover was first agreed in August 2019 but has faced a drawn-out regulatory review. 

The deal is a big win for Blackstone, the Financial Times reported. The US private equity group bought a majority stake in Refinitiv for $17 billion from Thomson Reuters in early 2018. 

The final hurdle to completion is approval from competition regulators in Brussels, who have delayed a decision until 21 January to examine the LSE’s proposal to sell Borsa Italiana to rival Euronext for €4.3 billion.

The London Stock Exchange said it expects the green light from outstanding regulatory scrutiny of its $27 billion takeover of Refinitiv.

“The Group has received 16 merger control clearances to date and good progress has been made in relation to outstanding jurisdictions,” the exchange said in a statement.

The LSE said it has published a prospectus and intends to re-apply for admission on its own market as the Refinitiv deal constitutes a reverse takeover under UK listing rules.

“All remaining merger control and regulatory approvals are expected to enable completion of the transaction and admission in Q1 2021,” the LSE said in a statement.

European Union competition officials are due to rule on the takeover in January, and Reuters has reported that the deal is set to get the green light in Brussels. Reuters parent Thomson Reuters owns 45% of Refinitiv.

Bankers, lawyers and other advisers working on the takeover are set to earn $1.1 billion in fees, in excess of most comparable deals. The costs were detailed in an updated prospectus released on Wednesday. The exchange is being advised by Goldman Sachs, Morgan Stanley, Robey Warshaw, Barclays and RBC Capital Markets, and lawyers led by Freshfields Bruckhaus Deringer. Evercore, Canson Capital Partners and Jefferies are among those acting for Refinitiv. The LSE said that £358 million of the deal costs would be for services including financial advisory, legal work and accounting. This is up from £281 million in costs that the LSE reported a year ago. A further £477 million will go to financing costs related to the deal, which will see the issuance of new shares and debt to pay Refinitiv’s owners, it added.

The LSE is buying Refinitiv from a private equity consortium led by Blackstone, the private equity group, which will hold a 37 per cent stake in the enlarged company once the deal is completed. 

The takeover was first agreed in August 2019 but has faced a drawn-out regulatory review. 

The deal is a big win for Blackstone, the Financial Times reported. The US private equity group bought a majority stake in Refinitiv for $17 billion from Thomson Reuters in early 2018. 

The final hurdle to completion is approval from competition regulators in Brussels, who have delayed a decision until 21 January to examine the LSE’s proposal to sell Borsa Italiana to rival Euronext for €4.3 billion.

LSE Prospectus and group board appointments ■