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Euronext offers the LSE €510m for its French clearing business

The London Stock Exchange Group (LSEG) has received an all-cash offer of €510m for its LCH SA French-regulated subsidiary, in a deal that could unlock its mega merger with Deutsche Borse.

Announced to the stock exchange this morning, the nine-figure sum comes after LSEG revealed in mid-December that Amsterdam-headquartered Euronext had entered into exclusive discussions to acquire its French clearinghouse business.

The deal is viewed as a key step in removing any anti-trust concerns that may arise from its proposed €24bn mega-merger with Frankfurt’s Deutsche Borse.

In a statement, the LSE said: “LSEG and LCH Group confirm that the terms and conditions, including the financial terms on which any Transaction would take place if the irrevocable offer were accepted, have been agreed with Euronext offering an all-cash consideration of €510 million to be adjusted for surplus regulatory capital movement between 30 June 2016 and completion of the Transaction. LSEG will use any proceeds it receives for general corporate purposes.”

It also announced that any potential deal would be dependent upon its merger with the German business going through.

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