London Stock Exchange expects regulatory nod to Refinitiv deal

·1-min read
FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain

LONDON (Reuters) -The London Stock Exchange Group said on Wednesday it expects the green light from outstanding regulatory scrutiny of its $27 billion deal to buy data and analytics company Refinitiv.

"The Group has received 16 merger control clearances to date and good progress has been made in relation to outstanding jurisdictions," the London exchange said in a statement.

The LSE said it has published a prospectus and intends to reapply for admission on its own market as the Refinitiv deal constitutes a reverse takeover under the UK's listing rules.

"All remaining merger control and regulatory approvals are expected to enable completion of the transaction and admission in Q1 2021," the LSE said in a statement.

The European Union's competition officials are due to rule on the takeover in January, and Reuters has reported that the deal is set to get the green light in Brussels. The parent of Reuters, Thomson Reuters Corp, owns 45% of Refinitiv.

The professional advisers to both LSE and Refinitiv are expected to earn a combined 835 million pounds ($1.12 billion) from assisting on the transaction, according to Wednesday's prospectus.

This is split between costs associated with the deal's financing worth 477 million pounds, as well as 358 million pounds of expenses related to "financial advisory, legal/anti-trust, accounting, admission and other transaction costs."

LSE's suite of financial advisers were Goldman Sachs Group Inc, Morgan Stanley, Robey Warshaw, Barclays Plc and RBC Capital Markets, with Freshfields Bruckhaus Deringer acting as legal counsel.

Refinitiv was advised by bankers at Evercore Inc, Canson Capital Partners and Jefferies Financial Group.

($1 = 0.7461 pound)

(Reporting by Huw Jones in London and David French in New YorkEditing by Louise Heavens and Matthew Lewis)