Investment - Articles - London Stock Exchange merger with Deutsche Boerse blocked

 Shares in London Stock Exchange up 3.5% on back of news
 Questions raised over viability of merger since Brexit vote and LSE said it regrets decision and will move on to starting a £200m share buyback
 The Share Centre recommends London Stock Exchange as a ‘hold’

 “London Stock Exchange shares are up by around 3.5% following on from the unsurprising news that that the proposed merger with Deutsche Boerse has been blocked by the European Commission as they thought it would have created a monopoly.

 “Ever since the Brexit decision last year, questions were raised over the viability of the £21bn deal between the London Stock Exchange and its German counterpart. When the LSE refused to sell its stake in its fixed income trading platform, some may say the writing was on the wall. The LSE said today that it regrets the decision and will now move on starting with a £200m share buyback and that it is confident of its prospects as a standalone business.

 “Interested investors may want to acknowledge that the share price has powered ahead over the last five years on the back of improving markets, leading to higher volumes of trading, new issues and fund raising and recently merger and bid news. Diversification has been a key, with the acquisition of Frank Russell, an index group, and an increased holding in clearing house LCH Clearnet. We continue to recommend London Stock Exchange shares as a ‘hold’ for medium risk investors seeking growth.”