London Stock Exchange Group Confirms Talks for $27 Billion Refinitiv Deal

Refinitiv shareholders would likely hold about a 37% stake in the London Stock Exchange Group and less than 30% of the total voting rights if the deal is sealed.
By Adam Smith ,

The London Stock Exchange Group has revealed that it's negotiating buying Refinitiv, the financial information service provider, in a deal worth an estimated $27 billion.

"London Stock Exchange Group plc ... notes the recent press speculation and confirms that it is in discussions with a consortium including certain investment funds affiliated with Blackstone as well as Thomson Reuters ... about a possible acquisition of Refinitiv Holdings Ltd...," said the London Stock Exchange Group in a statement released over the weekend.

The Blackstone consortium, said the group, includes affiliates of the Canada Pension Plan Investment Board and GIC Special Investments and other co-investors of Blackstone.

The London Stock Exchange Group said it expects it would purchase Refinitiv for a total of about $27 billion. New shares of the London Stock Exchange Group would be issued "as consideration in full for Refinitiv's equity value," it added, after adjusting for Refinitiv's net debt and other adjustments.

Refinitiv shareholders would likely hold about a 37% stake in the group and less than 30% of the total voting rights, it said.

Board membership, governance and other details are still being worked out, said the group, but so far, Don Robert would continue to chair the London Stock Exchange Group and David Schwimmer would remain the chief executive officer and David Warren, the chief financial officer.

Together the exchange group and Refinitiv would become the "largest listed global financial markets infrastructure provider" according to revenue, the group said. Last year, the two entities combined saw a total of nearly $6.7 billion in revenue.

The exchange group said the deal would help it expand its "data and distribution capabilities," as well as diversify its trading capabilities and expand its global presence.

Refinitiv provides financial data and analytics.

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