London Stock Exchange agreed to purchase Refinitiv
London Stock Exchange signs agreement to buy Refinitiv for $ 27 billion, making it a global competitor to Bloomberg in financial news and data.
The all-share deal will allow the LSE to take control of Refinitiv, whose Eikon terminals on marketplaces dispute those provided by Bloomberg, from a consortium led by Blackstone, including Thomson Reuters, which owns the Reuters news service..
LSEG shares rose 5% to £ 69.50 on news of the completion of the deal, giving the company a market value of £ 24 billion. LSEG share price has risen more than 60% over the past year.
«The Refinitiv acquisition is transformational, said David Schwimmer, CEO of LSEG. «This is a rare and compelling opportunity to bring two world-class businesses together to create a global leader in financial infrastructure».
Schwimmer also said the deal will expand its presence in the US, the world’s largest financial market, as well as expand LSEG’s operations in Asia and emerging markets..
He added that the increase in the company’s international presence is not a reaction to Brexit and noted a readiness for a no-deal scenario..
CFO David Warren says job cuts will take place over the next five years. LSEG employs about 5,000 people, while Refinitiv employs 19,000 people. Separately, in March, LSEG said it was cutting about 250 employees, 5% of the total headcount, to save £ 30 million..
As part of the deal, Refinitiv shareholders will own 37% of the combined group and Thomson Reuters 15%..