Deutsche Börse’s CEO is being investigated by Germany authorities over a share purchase made shortly before moves to merge with the London Stock Exchange Group (LSEG).
On 14 December 2015, the newly appointed CEO, Carsten Kengeter, is said to have purchased shares in Deutsche Börse worth around €4.5 million. Just two months later, the exchange operator announced its plans to merge with LSEG.
In a statement, firm confirmed there is an investigation into the share purchase but added that Kengeter was encouraged by the board to acquire a stake in the exchange to show he was committed to the company when he joined as CEO in late 2015.
The news comes at a crucial time for the merger deal, which is currently being analysed by EU competition authorities, which are due to make a decision on 13 March.
LSEG has already sold of its French clearing business LCH.Clearnet SA to placate competition regulators.