The EU on Wednesday formally blocked the proposed merger between Deutsche Boerse AG, a German a marketplace for the trading of shares and other securities, and the London Stock Exchange, stating the deal would create a monopoly in the clearing of fixed-income trading in Europe.

The resolution to block the $28 billion deal was expected following the LSE's rejection of demands by the European Commission in February to sell its stake in its Italian trading platform MTS SpA-a.

"We could not approve this merger on the terms which the two companies proposed," EU antitrust chief Margrethe Vestager stated.

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The German and British exchanges had agreed to merge last March with the goal of creating Europe's biggest stock exchange operator.