Refinitiv shareholders have agreed on definitive terms with the (LSEG), the exchange operator announced this Thursday, under which LSEG will acquire the company in an all-share transaction for around $27 billion.
As , the acquisition could be the biggest M&A deal in the intermediary sector this year and will see it become a UK-headquartered, global rival to Bloomberg.
Following the acquisition, shareholders of Refinitiv, a consortium of investment funds affiliated with Blackstone as well as Thomson Reuters, will hold an approximate 37 per cent stake in LSEG and under 30 per cent of the total voting rights of the Group.
Once the transaction has been completed, LSEG expects that it will enhance its customer offering by bringing together its diversified global business with Refinitiv’s market data, analytics and execution capabilities.
Furthermore, LSEG believes the acquisition will allow it to create a global multi-asset capital markets business, with the addition of Refinitiv’s foreign exchange (forex) and fixed-income venues, among other benefits.
Commenting on the transaction, Don Robert, Chairman, LSEG, said: “This transaction is a defining moment for LSEG in terms of its strategic importance. It will create substantial value for our shareholders and important benefits for our customers, employees and other stakeholders.
“The Board and I look forward to welcoming Blackstone and Thomson Reuters as supportive, long-term shareholders as we work together to realise the compelling benefits of this transaction.”
LSEG CEO to lead the combined business
Post-acquisition, Refinitiv’s CEO David Craig will continue with his role. He will also join LSEG’s Executive Committee. LSEG’s Chairman Don Robert with chair the combined business, whilst David Schwimmer, LSEG’s CEO, will lead the new company with David Warren as LSEG’s Chief Financial Officer.
Commenting on the transaction, David Craig, Chief Executive Officer, Refinitiv, said: “LSEG’s business is highly complementary with Refinitiv’s leading global data platform, transaction and distribution network. Our aim is to capture the opportunity of data which we believe is driving unprecedented change in the global financial community. The combined business will allow us to better serve customers across all regions.
“Our two companies both have strong heritages, a shared approach to open access and partnership, and we are excited to work with the LSEG team to create a leading financial markets infrastructure group and to continue to invest in our business.”