By Ian Walker
LONDON--London Stock Exchange Group PLC (LSE.LN) said Tuesday it has agreed to sell the French unit of its derivative clearing business to Euronext NV (ENX), a pan-European exchange operator, as it attempts to win regulatory approval for its proposed megamerger with Deutsche Boerse AG (DB1.XE).
The London Stock Exchange is selling LCH SA for 510 million euros ($534.3 million), to be adjusted for surplus regulatory capital movement between June 30, 2016 and completion of the transaction. It announced on Dec. 20 that the company was in talks with Euronext to sell the unit.
LSE plans to use the money raised for general corporate purposes.
Deutsche Börse and LSE, which together would have a market value of about $28 billion, aim to create Europe's largest exchange operator, betting the deal will create a more formidable competitor against encroaching U.S. rivals CME Group Inc. and Intercontinental Exchange Inc., while helping to integrate Europe's capital markets by improving financial stability and offering companies and other market participants a deeper pool of funding.
Ben Dummett contributed to this article.
-Write to Ian Walker at email@example.com
(END) Dow Jones Newswires
January 03, 2017 02:50 ET (07:50 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.