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Legal heavyweights brought in to advise London Stock Exchange on Deutsche Boerse deal

Two heavyweight law firms from the capital have been drafted in to advise the London Stock Exchange (LSE) and Deutsche Boerse on a potential tie-up.

Long-term LSE partner Freshfields Bruckhaus Deringer is expected to advise the exchange on the potential merger, while another London-based firm, Linklaters, will work with the German exchange, reports The Lawyer.

Freshfields have previously advised the LSE on a number of deals, including its failed £1.1bn takeover of Australian investment firm Macquarie Group.

The newly proposed partnership, which would see both exchanges significantly expand their reach across Europe, would see both the LSE and Deutsche Boerse continue to operate under their separate brand names.

Commenting on press speculation about a potential merger yesterday, a London Stock Exchange statement said: “The Boards believe that the potential merger would represent a compelling opportunity for both companies to strengthen each other in an industry-defining combination, creating a leading European-based global markets infrastructure group.

“The combination of LSE and Deutsche Boerse’s complementary growth strategies, products, services and geographic footprint would be expected to deliver an enhanced ability to provide a full service offering to customers on a global basis.

“All key businesses of LSE and Deutsche Boerse would continue to operate under their current brand names. The existing regulatory framework of all regulated entities within the Combined Group would remain unchanged, subject to customary and final regulatory approvals.”