Blackstone might soon announce the merger of its financial data firm Refinitiv with London Stock Exchange (LSE). However, the deal is subject to antitrust review before it comes through, Reuters reported.
The $27 billion deal is at the advanced stages of negotiation. The proposed merger might broaden the scope of LSE’s information service business. There is speculation that antitrust regulators might soon start an in-depth review which may even extend up to a period of 18 months, the media report said.
The London bourse said that the payment would be made by offering its newly shares. By definition, Refinitiv’s existing shareholders will become LSE’s shareholders owning about 37 percent of the new merged company.
Last year, Blackston had purchased a 45 percent stake in Refinitive from Thomson Reuters, valuing the company at $20 billion including debt. Sources according to Reuters said that Refinitiv management will also get a few LSE shares.
Evercore and Canson Capital Partners are hired by Blackstone to negotiate the deal on its behalf, while Guggenheim Securities will represent Thomson Reuters. The media report also said that there will be share lock-up periods for both Blackstone and Refinitive investors. The fist lock-up period is expected to last through 2020.
Blackstone is an American multinational asset management and financial services firm based in New York. The company has also signed a deal with $250 million investment in Future Lifestyle Fashions owned by Kishore Biyani. According to media reports, the primary investment will be in the form of structured debt and equity.