Now the French object to LSE takeover bid

A GERMAN takeover of the London Stock Exchange poses a grave threat to international competition, a French politician has warned.

Finance minister Michel Sapin said the £21bn deal with Frankfurt-based Deutsche Boerse could pose a serious risk to global markets.

His comments will come as a major embarrassment to LSE’s boss Xavier Rolet, who sees the takeover as the crowning glory of his seven years at the helm. Sapin called on the European Commission to carefully scrutinise the potential takeover of the 215-year-old exchange.

Sapin said: ‘We have doubts about the consequences this could have for the financing of the real economy in France and Europe. The merger will result in a large group which could hold within it a majority of the tools that make our markets function efficiently. That poses a competition problem.’

Both LSE and DB insist their tie-up is a ‘merger of equals’. But the new firm will report profits in euros, Deutsche boss Carsten Kengeter will be chief executive and shareholders in the German firm will get a 54.4pc controlling stake.