London Stock Exchange to acquire 4.92% stake in Euroclear

Maria Nikolova

The transaction, valued at €278.5 million, will be funded from existing cash and debt facilities.

London Stock Exchange Group Plc (LON:LSE), or LSEG, is acquiring a minority stake in Euroclear. LSEG has just announced it will acquire an aggregate 4.92% stake in Euroclear’s share capital for €278.5 million (£241.9 million).

LSEG’s minority investment is set to bolster LSEG and Euroclear’s existing operational and commercial relationship and provide further opportunities for the companies to deliver benefits to their customers through commercial collaboration and product development. Following LSEG’s minority investment in Euroclear, LSEG and Euroclear anticipate that a representative of LSEG will join the Board of Euroclear Holding SA/NV.

The transaction will be funded from existing cash and debt facilities and it is expected that LSEG’s adjusted net debt to EBITDA will remain within its target range of 1-2 times following completion. The transaction is expected to be earnings accretive.

David Schwimmer, CEO of LSEG, commented:

“We are delighted to become a shareholder of Euroclear, with which we have a long-standing operational and commercial relationship. Both LSEG and Euroclear share the same open access philosophy and a customer partnership approach which is central to our businesses. We look forward to working with Euroclear to drive continued innovation and efficiencies for the benefit of our customers and the wider market.”

Let’s recall that, in December 2018, LSEG announced that it had increased its stake in LCH Group Holdings Limited, a group of leading global multi-asset clearing houses, to 82.6%. LSEG said back then it had completed the acquisition of an additional 14.6% from certain minority shareholders for an aggregate amount of €424.5 million.

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