The planned merger between Deutsche Börse AG and London Stock Exchange Group PLC to create Europe’s largest exchange is at risk after the LSE said late Sunday that it wouldn't sell its majority-owned fixed-income trading platform (MTS) in Italy to appease antitrust concerns over the deal.
The European commission had ordered the LSE to sell its 60 percent stake in MTS and had given the exchanges until Monday to come up with a proposal to meet that demand. The LSE said it was “highly unlikely” it would be able to meet antitrust conditions set by the European commission and warned that such a sale would harm its ongoing business.
"Taking all relevant factors into account, and acting in the best interests of shareholders, the LSE Board today concluded that it could not commit to the divestment of MTS," the exchange said on Sunday night.
This is the third time the two exchanges have tried to merge, with two previous attempts (in 2000 and 2005) ending in failure. The parties will await the European commission's decision which is expected by the end of March 2017.


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