London Stock Exchange Group increases its stake in LCH Group

Maria Nikolova

LSEG has increased its stake in LCH Group Holdings Limited to 82.6%.

London Stock Exchange Group Plc (LON:LSE), or LSEG, announces that it has increased its stake in LCH Group Holdings Limited, a group of leading global multi-asset clearing houses, to 82.6%. The relevant announcement was made earlier today.

LSEG has completed the acquisition of an additional 14.6% from certain minority shareholders for an aggregate amount of €424.5m (£382.1m).

Let’s recall that, in October this year, LSEG said it was in the process of acquiring further shares in LCH.

LSEG said back then it had entered into agreements with certain minority shareholders of LCH to acquire up to a further 15.1% of LCH’s share capital – a move expected to take its majority ownership to over 80%. In terms of financial details, LSEG explained that the total cash consideration payable by LSEG would be up to a maximum of €438 million.

The Acquisitions follow on from previous minority acquisitions by LSEG in late 2017 and early 2018, in line with LSEG’s strategy of increasing its majority ownership while re-affirming its commitment to LCH’s customer partnership model with 14 minority shareholders remaining.

As per LSEG’s key financial and operating metrics for the third quarter of 2018, Information Services and LCH both delivered good year-on-year growth. LCH income was up 15% (up 15% at constant currency), driven by 12% revenue growth in OTC clearing, with strong volumes at SwapClear and ForexClear also contributing to 49% growth in net treasury income.

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