€27bn tie-up between Deutsche Boerse and London Stock Exchange faces Brexit scrutiny

Deutsche Boerse and London Stock Exchange (LSE) agreed to combine in a $30 billion (€27bn) deal to create a European trading powerhouse better able to compete with US rivals encroaching on their turf.

But the deal, which marks a third attempt to link the Frankfurt and London exchanges, may prompt a takeover war after New York Stock Exchange owner Intercontinental Exchange said it may bid for the British group.

Nearly 16 years after Deutsche Boerse first tried to take over LSE, the exchanges said last month they were discussing an all-share merger, which they confirmed yesterday would give Deutsche Boerse shareholders 54.4% and LSE investors 45.6% of a new company.