Warwick Business School Professor John Colley Comments On LSE/Deutsche Borse Merger: What Next For LSE After Deutsche Borse Merger Blocked?

Commenting on the news the merger between LSE and  Deutsche Borse has been blocked, John Colley, Professor of Practice at Warwick Business and an expert on mega-mergers, has made the following statement:

"News from the EU that the merger has been blocked comes as no surprise to anyone.

"The likely outcome had been well flagged by all parties. The real question is what next for the LSE and Xavier Rolet? The European strategy has failed and perhaps a new CEO will bring a new strategy.

"Xavier Rolet had previously agreed to stand aside in the proposed merger, which suggests a reduced appetite for the job.

"Whilst the business is performing well at the moment there is very likely to be some fallout from Brexit. A weakened LSE may need to look west for a future partner and strategy.

"There is likely to be plenty of interest from that quarter where Chicago's Intercontinental Exchange (ICE) has grown rapidly in recent years through acquisition. Dollar strength against Stirling and low costs of borrowing suggest that ICE will come calling very quickly. The LSE is now vulnerable to a bid following the failed merger and an ambivalent CEO."