A consortium of Blackstone and Thomson Reuters, and funds affiliated to them, will hold 37 percent of the stock in London Stock Exchange Group (LSEG) – after selling its financial markets infrastructure business Refinitiv to the group, getting payed in LSEG shares.
Refinitiv was formed as late as 2018, as Blackstone took a majority stake in the activities that had previously made up most of Thomson Reuters’ financial markets infrastructure business – famously competing with Bloomberg since long.
The new deal values the Refinitiv enterprise at $27 billion, notably up from the $20 billion mark at Blackstone’s majority acquisition last autumn.
Stronger data envisioned
According to a market announcement by the London Stock Exchange Group on 1 August, its board believes the merger will, among other changes, “significantly enhance LSEG’s customer proposition in data and analytics, accelerating opportunities using intellectual property”, as well as “create a global multi-asset capital markets business”.
“The transaction brings together two highly complementary businesses to create a leading, UK headquartered, global financial markets infrastructure provider with a leading data and analytics business, significant capital markets capabilities across multiple asset classes, and a broad post-trade offering, well positioned for future growth in a fast-evolving landscape,” all according to the LSEG statement.
The deal will give Refinitiv’s shareholders around 37 percent of the economic interest in LSEG, yet under 30 percent of the votes.