Merger hits EC obstacle

The London Stock Exchange (LSE) has said its £21 billion merger with Germany’s Deutsche Borse is likely to be blocked by the European Commission.

The LSE said the Commission had made the “disproportionate” request that it sells its stake in MTS, an electronic market.

The stock market said that, with its shareholders’ best interests in mind, it could not go ahead with the request but would continue to pursue the merger.