LSE in talks to buy Refinitiv for $27bn
The London Stock Exchange (LSE) is in talks to buy financial data analytics provider Refinitiv Holdings for $27 billion, writes Jane Connolly.
Refinitiv acquires AlphaDesk
Reuters reports that the deal would include debt, which stood at $12.2 billion at the end of December.
LSE would fund the acquisition with new LSE shares used as currency. As a result, Refinitiv’s existing investors would become LSE shareholders and own about 37% of the combined company, with less than 30% of the voting rights.
Blackstone Group acquired a majority stake in Refinitiv from Thomson Reuters less than a year ago – a source has told Reuters that the LSE deal would roughly double Blackstone’s original investment.
Thomson Reuters – whose shares hit a record high last week after news of the talks emerged – currently owns a 45% stake in Refinitiv and has confirmed it will own a 15% stake in LSE if the deal goes through.
The merger would see a significant expansion of LSE’s information services business, which is viewed as a more stable cash flow provider than its primary businesses.
