London Stock Exchange still confident on $27 billion Refinitiv deal

LONDON (Reuters) – The London Stock Exchange said on Tuesday it was committed to completing its $27 billion takeover of data and analytics company Refinitiv in the second half of the year as coronavirus-related volatility in markets lifted first quarter income.

FILE PHOTO: A worker shelters from the rain as he passes the London Stock Exchange in the City of London at lunchtime October 1, 2008. REUTERS/Toby Melville/File Photo

“The Group continues to make good progress on planning for the integration of Refinitiv,” the LSE said in its earnings update.

Refinitiv is 45%-owned by Thomson Reuters, which owns Reuters News.

European Union competition regulators had requested a delay on all filings from merger parties due to the coronavirus pandemic.

The LSE said it was too early to say what the impact of the pandemic would be on its own operations but that it has sufficient cash resources to maintain continuity of business.

The LSE intends to pay its final dividend for the 2019 financial year, subject to approval from shareholders at the annual meeting later on Tuesday morning, it said.

Many of the LSE’s banking customers have come under pressure from regulators not to pay a dividend. The exchange’s settlement house Euroclear said last week it would suspend its dividend.

First quarter total income rose 13% year-on-year to 615 million pounds ($763.22 million) as the exchange benefited from higher trading in shares, and higher clearing activity.

Markets across the world faced bouts of extreme volatility and record volumes during March as investors priced in recessions following national lockdowns that have shut down swathes of economic activity.

($1 = 0.8058 pounds)

Reporting by Huw Jones; editing by Dhara Ranasinghe

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