Intercontinental Exchange (ICE) has stated it will not be making a counterbid for the London Stock Exchange Group (LSE), following months of consideration.
ICE explained, “there was insufficient engagement to confirm the potential market and shareholder benefits of a strategic combination.”
“Therefore, ICE has no current intention to make an offer for LSE.”
The unexpected move means Deutsche Boerse and LSE are track to merge.
LSE and Deutsche Boerse confirmed they were in conversation over a potential merger in February, but analysts agreed ICE would likely make a counter offer.
According to a research note from the Credit Suisse on the LSE’s first quarter results, it said: “We think there is a high probability of a financially superior counterbid from ICE which we think offers further upside from current levels.”
Carsten Kengeter, CEO of Deutsche Boerse, said the merger is set to, “bring together two of the most respected and successful market infrastructure providers in the world to lead the way in European capital markets and set the benchmark for further growth and best-in-class services.”
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