LSE agrees to merge with Deutsche Boerse

London Stock Exchange Group Plc and Deutsche Boerse AG  agreed to merge, a deal that would create world’s biggest trading organisation as long as rival suitors don’t upend the agreement and regulators give their blessing.

The two companies valued at £21.3 billion ($30.5bilion), LSE’s equity holders will own 45.6 per cent while Deutsche Boerse’s stockholders will get the remaining 54.4 per cent according to a statement. The companies predicted that they would have a cost savings or synergies of  £355.5 million (€ 450 million) each year after the deal is completed. This is the third time that the German exchange Group has sought to buy LSE since the turn of the century, the previous attempts being in 2005 and 2000. This is the biggest deal  between market operators since International Exchange Inc bought NYSE Euronext  back in November 2013.

The Anglo-German alliance  will dominate Europe and could possibly expand to Asia and the U.S, which means  the Euro Stoxx50 Index, the FTSE 100 Index and the DAX Index will all be under one roof. Deutsche Boerse boss Carsten Kengeter who will be the CEO of the combined company and LSE chief Xavier Rolet were at Goldman Sachs Group Inc.