London Stock Exchange to take over Refinitiv as clearing jumps

The London Stock Exchange Group (LSE.L) said on Friday it would complete its $27 billion takeover of analytics company Refinitiv on time this year as it reported a rise in annual income driven by a jump in clearing activity.

The exchange’s chief executive David Schwimmer also said it was too early to assess the impact of the coronavirus epidemic on its global business, although like many companies it has imposed travel restrictions on some staff.

Constructive “pre-notification” discussions with European Union competition regulators regarding the purchase of Refinitiv are underway, with Schwimmer saying he expects to submit a formal application in March for approval.

There was nothing unexpected in the amount of time it was taking to obtain regulatory approval and detailed planning on integrating the two companies was underway, he added.

“We remain on track to close the transaction in the second half of this year,” Schwimmer, the former Goldman Sachs veteran who took the reins at the LSE in 2018, said.

Refinitiv is 45%-owned by Thomson Reuters (TRI.TO), which owns Reuters News.

Schwimmer said it was premature to speculate whether the LSE may need to sell off parts of the group, such as the Milan Exchange, to win approval from Brussels. Rival Euronext has said it would be interested in bidding for it if so.

“With respect to Borsa Italiana, it has been an integral part of the business... and there is no expectation or intention that any of that should change,” Schwimmer told reporters.

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