London Stock Exchange
|London Stock Exchange plc
|legal form||public limited company|
|Seat||London , UK|
|Number of employees||4,741|
|sales||£ 1.768 billion (2017)|
|As of December 31, 2017|
The London Stock Exchange (LSE), based in the British capital London, is one of the largest and oldest stock exchanges in Europe . The LSE is a stock corporation and is divided into three segments; the Main Market, the Alternative Investment Market (AIM) and EDX London . The independent FTSE Group prepares stock indices on behalf of the LSE , the best known being the FTSE 100 index .
History dates back to 1698 when the stock traders were banned from the Royal Exchange for their rowdy behavior . They then met at Jonathan's Coffee House , where John Castaing published lists of stock and commodity prices. In 1773 the traders moved into a new building on Sweeting's Alley and named it The Stock Exchange . In 1801 the formal foundation of the stock exchange took place, which moved to the Capel Court in the following year. In 1923 the stock exchange received its own coat of arms with the motto “dictum meum pactum” (my word is my obligation). The Stock Exchange Tower on the corner of Broad Street and Threadneedle Street was opened in 1972 by Queen Elizabeth II . The extensive trading rooms became practically superfluous when the British financial market was fully liberalized in 1986 (reform referred to as the " Big Bang ") and electronic trading introduced a few years later. In 1990 the stock exchange turnover of shares and fixed-income securities was the equivalent of 2.511 billion euros. In 2004 the stock exchange moved again, this time to Paternoster Square not far from St Paul's Cathedral .
Takeover candidate (2004–2007)
Talks took place at the end of 2004 regarding a possible takeover of LSE by Deutsche Börse . However, the LSE rejected the offer because it rated it too low. Another £ 1.5 billion offer from Macquarie Bank in Australia was also rejected in December 2005. In March 2006 the NASDAQ was offering £ 2.4 billion. When the LSE also refused, NASDAQ threatened a hostile takeover; the New York Stock Exchange has been identified as a possible White Knight . NASDAQ withdrew its offer at the end of March 2006, but not even two weeks later signed a contract with Ameriprise Financial , the largest LSE shareholder at the time. It took over their share package and bought additional shares, which increased their stake to over 25%. In December 2006, NASDAQ again launched a takeover bid in the hope of being able to increase its stake to 50% plus one share, which it clearly failed. As a result, NASDAQ gave up all takeover attempts in August 2007 and subsequently sold its entire block of shares, the majority of which to Borse Dubai Ltd.
Merger with Borsa Italiana (2007)
In June 2007, Borsa Italiana SpA and the London Stock Exchange announced their merger , which took effect on October 1, 2007. The transaction took place by means of a share swap , with which the LSE took control of Borsa Italiana SpA and its previous shareholders became the largest group of shareholders on the London Stock Exchange. Borsa Italiana SpA was valued at 1.878 billion euros.
Planned takeover of the Canadian TMX Group
On February 9, 2011, the London Stock Exchange (LSE) announced the acquisition of the Canadian TMX Group, upon completion of which LSE shareholders would hold 55% of the new company. On June 29, however, both companies announced that the TMX Group did not see a majority in favor of the merger with the LSE. In October, TMX Group agreed to be acquired by a Canadian consortium of investors led by Maple.
Takeover of LCH.Clearnet
On September 27, 2011, the London Stock Exchange confirmed that it was holding exclusive talks with LCH.Clearnet for the purpose of a takeover by LSE. On March 9, 2012, the London Stock Exchange announced that a takeover agreement had been reached with LCH.Clearnet. Accordingly, the LSE plans to acquire a stake of at least 51% and a maximum of 60%. The purchase price is EUR 463 million.
Acquisition of the Russell Investment Group
On June 26, 2014, the London Stock Exchange announced the acquisition of index provider and asset manager Russell Investment Group . The purchase price is 2.7 billion US dollars and is financed through a capital increase with a volume of 1.6 billion US dollars and through existing and new loans.
In October 2015, LSE announced that it would sell the Russell Investment Group again. The buyer is private equity firm TA Associates, which will pay $ 1.2 billion.
Failed merger with Deutsche Börse
On February 23, 2016, Deutsche Börse announced that it was planning a "merger of equals" with the London Stock Exchange Group. The shareholders of the London Stock Exchange Group will receive 0.4421 shares of the new merged company for each share, while the shareholders of the Deutsche Börse can swap their shares one for one. In the end, the shareholders of Deutsche Börse are to hold 54.4 percent of the shares in the new company, and the shareholders of the London Stock Exchange the remaining 45.6 percent. The merger is expected to save both companies € 450 million ( £ 354 million ) annually in costs , representing approximately 20 percent of the combined total cost of ownership of the two companies.
On March 1, 2016, the Intercontinental Exchange announced that it wanted to submit an offer for the LSE, but Deutsche Börse and LSE notified their planned merger to the EU Commission on August 25, 2016 . This prohibited the merger at the end of March 2017, as “a de facto monopoly” would have been created on the market for clearing fixed-income financial instruments. As early as the end of February 2017, the London Stock Exchange assumed it would fail after it had refused to meet a requirement of the EU competition watchdog and to sell its majority stake in the Italian bond trading platform MTS . The project was also made more difficult by the UK's exit from the EU with regard to the question of the legal seat. Before the Brexit referendum, the parent company of the planned new stock exchange should have its seat in London.
Takeover of Refinitiv
In August 2019, LSE took over a majority stake of 55% in the business information service Refinitiv from the Blackstone Group . The transaction was valued at $ 27 billion. Refinitiv is one of the largest information companies in the world that processes economic data and sells it to other organizations. Refinitiv was created in 2018 through a spin-off of the “Financial & Risk” division of the Thomson Reuters group.
As of September 26, 2018, the following shareholder structure resulted:
- 71.0% free float
- 10.3% Qatar Investment Authority
- BlackRock 6.9%
- The Capital Group Companies 6.8%
- Lindsell Train Limited 5.0%
The main trading system of the LSE for shares is SETS , which, similar to the German Xetra , by Andersen Consulting , a sister company of Arthur Andersen was specified and configured.
There is also the SEAQ trading system , which, similar to the German Xontro system , is the platform for trading in securities listed in the Alternative Investment Market (AIM) sub- segment.
A special feature of the LSE is that share prices for this trading venue are not displayed in the basic unit GBP (pound), but in the 1/100 unit GBp (pence), while optional order limits still have to be in GBP.
Similar to the German securities identification number , the LSE assigns a national identification number for securities with the Stock Exchange Daily Official List (SEDOL).
- Official website (English)
- Early documents and newspaper articles on the London Stock Exchange in the 20th century press kit of the ZBW - Leibniz Information Center for Economics .
- ↑ a b London Stock Exchange: LSEG Annual Report 31 December 2017 (PDF) Retrieved on December 14, 2018 (English).
- ^ History of London Stock Exchange Group. Accessed April 7, 2019 .
- ↑ London Stock Exchange Group announcement of results for the six months ended September 30, 2007. Accessed April 7, 2019 .
- ↑ TMX recommends shareholders takeover offer from the Maple bidder group . In: Reuters . October 31, 2011 ( reuters.com [accessed April 7, 2019]).
- ↑ Archived copy ( memento of the original from October 9, 2011 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ London Stock Exchange secures LCH.Clearnet. In: nzz.ch. March 9, 2012, accessed October 14, 2018 .
- ↑ London Stock Exchange buys Russell Investments. In: nzz.ch. June 26, 2014, accessed October 14, 2018 .
- ^ Sale of Russell Investments. In: nzz.ch. October 9, 2015, accessed October 14, 2018 .
- ↑ http://deutsche-boerse.com/dbg/dispatch/de/notescontent/dbg_nav/home/INTEGRATE/mr_pressreleases?notesDoc=3555D2611776FE5BC1257F6200518557&newstitle=deutscheboerseag:potentlicherz&location=home
- ↑ London Stock Exchange and Deutsche Boerse agree merger. BBC News, March 17, 2016, accessed March 17, 2016 .
- ↑ Deutsche Börse threatens takeover battle for British LSE. FAZ , March 1, 2016, archived from the original on March 4, 2016 ; accessed on July 29, 2020 .
- ↑ LSE and Deutsche Börse announce merger. In: Handelsblatt. August 25, 2016. Retrieved August 25, 2016 .
- ↑ EU Commission prohibits the merger of Deutsche Börse and LSE at Spiegel Online , March 29, 2017 (accessed on March 29, 2017).
- ↑ Reuters: London Stock Exchange swallows data company Refinitiv for 27 billion dollars , accessed on December 31, 2019
- ↑ Shareholders. Accessed April 7, 2019 .
- ↑ SETS ( Memento from May 5, 2009 in the Internet Archive )
Coordinates: 51 ° 30 ′ 55 ″ N , 0 ° 6 ′ 0 ″ W.