London Stock Exchange clinches acquisition of Refinitiv for $27bn

Combined group aims to rival US exchanges and Bloomberg’s financial data platform

The London Stock Exchange Group has agreed to buy data provider Refinitiv for $27bn, sealing a deal that will turn it into a global markets and information powerhouse to rival Michael Bloomberg’s financial data empire.

The LSE said it would pay for the purchase by issuing $14.5bn in new shares and take on $12.5bn of existing debt to acquire Refinitiv, which is best known for its Eikon desktop terminals.

It will also pick up Refinitiv’s majority stake in the listed and fast-growing bond trading platform Tradeweb and outright ownership of currency trading platform Fxall. The combined group will have annual revenues of £6bn if the LSE can successfully navigate a lengthy antitrust process to complete the transaction.

Shares in the LSE jumped almost 9 per cent in early afternoon trading in London on Thursday, adding to the gains since the group confirmed at the weekend

a Financial Times report that it was in talks to buy Refinitiv. The company’s market value now sits above £24bn, up more than 20 per cent since Friday.

David Schwimmer, chief executive of the LSE, said: “Refinitiv brings highly complementary capabilities in data and capital markets, as well as deep customer relationships across a truly global business.”

Don Robert, LSE’S chairman, said: “This transaction is a defining moment for LSEG in terms of its strategic importance.”

The all-share deal will turn Refinitiv’s owners, which include US private equity group Blackstone and Canada’s Thomson Reuters, into the LSE’S biggest shareholders. Together, they will own 37 per cent of its shares and control just under 30 per cent of its voting rights.

The group has agreed to a lock-up that will prevent them from selling shares for two years, with the exception of a small portion that will be allowed to be sold after 30 days from the deal’s completion.