Euronext makes €510 million bid for LCH.Clearnet SA

Offer made for LCH Clearnet SA following exclusive talks with Euronext.

Euronext has announced it has made an all-cash offer of €510 million to purchase the London Stock Exchange’s (LSE) France-based clearing house LCH.Clearnet SA.

The proposed acquisition is subject to review and approval by the European Commission in connection with the merger of LSE and Deutsche Borse.

Last month, Euronext confirmed it was in exclusive talks to acquire LCH.Clearnet SA, shortly after the Commission stated its objections over the merger had “narrowed”.

Euronext stated: “At this stage, there can be no certainty that these discussions will lead to a transaction, or as to the terms on which a transaction, if any, might be agreed.

“Any transaction would be conditional on the successful closing of the merger between LSEG and Deutsche Boerse and other conditions.”

In September the Commission began its review of the merger process and the LSE announced it would look to sell its LCH clearing unit in a bid to ease the regulator’s concerns. 

Euronext’s acquisition of LCH Clearnet SA from the LSE follows its recent expansion into cash equities clearing with the purchase of a 25% stake in Euro CCP last year.