European Rivalry Commissioner, Margrethe Vestager, said its “very serious concerns” were focused on evident services – which ensure the execution of trades made on stock trucks – relating to Government bonds and equity derivatives, contracts whose value is linked to the quotation of an underlying share.
The companies had proposed selling LSE’s French-based clearing accommodate LCH Clearnet, but this only partially met the Commission’s concerns.
Vestager swayed: “How exactly these markets work can seem like rocket principles. But actually our competition concerns are very simple. In some markets, Deutsche and LSE both require the same services. And in some of these markets they are essentially the barely players.
“The Commission’s role is to make sure that mergers in the EU do not fade competition. And we could not approve this merger on the terms that the two performers proposed.”
Deutsche Boerse chairman, Joachim Faber, described the decree as “a setback for Europe”, adding: “A rare opportunity to create a global make available infrastructure provider based in Europe and to strengthen the global competitiveness of Europe’s economic markets has been missed.”
The LSE, led by chief executive, Xavier Rolet, intended it regretted the decision to reject its “clear cut and viable” remedy package.
It discussed the tie-up would have supported Europe’s 23 million secondary and medium sized enterprises.
It added: “LSE is confident in its prospects as a standalone trade and its strategy for growth continues to deliver strong results.” LSE shares attained 82p to 3106p.