LSE's $27 billion Refinitiv takeover plan lifts its shares to record

London Stock Exchange shares rose more than 14% to a record high on Monday after it said it was in talks to buy financial data firm Refinitiv, in a deal worth $27 billion including debt.

The proposed deal, which would turn LSE into

a global player in financial data and expand its footprint in foreign exchange and fixed income, comes less than a year after Blackstone bought a majority stake in Refinitiv from Thomson Reuters, which valued it at $20 billion.

LSE's shares were 14% higher at 6,476 pence at 0743 GMT on Monday after hitting a record high of 6,508 pence, taking them to the top of London's bluechip index.

Thomson Reuters, the parent company of Reuters, holds a 45% stake in Refinitiv. A person familiar with the matter told Reuters that if the negotiations conclude successfully, a deal could be announced this week.

A merger would significantly expand LSE’s information services business, which the bourse operator has been building as a more stable source of cash flow than its primary transaction-reliant businesses.

(Graphic: LSE in talks to buy Refinitiv for $27 billion - tmsnrt.rs/2yhaDWS)

The LSE failed several times to merge with rival Deutsche Boerse AG.

Deutsche Boerse’s shares were 1.9% lower at 125 euros.

LSE’s proposed deal is also expected to face a long antitrust review before it can close, four sources told Reuters.

Berenberg analysts said the size and complexity of the proposed deal makes a detailed competition review almost inevitable, but European competition rules are generally supportive of consolidation in information services.

Bringing key over-the-counter trading and clearing venues together was likely to attract greater scrutiny, they said.

“We do not anticipate any deal to fall foul of anti-trust concerns,” the analysts said.

(Graphic: Exchanges Race To Grow - tmsnrt.rs/2yhh7oG)