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Pamela Barbaglia
LONDON (Reuters) – US – based investment group Blackstone is expected to announce the merger of Revinitiv 's majority – owned financial statements with the London Stock Exchange by a week ago, but the deal is expected to make it clear. subject to a lengthy regulatory review of the rules, competition and antitrust before its completion.
The merger, valued at about $ 27 billion, was at an advanced stage, with Blackstone, London Stock Exchange and Thomson Reuters agreeing broadly on key issues, the same sources said, asking not to to be identified.
Two sources said that an official announcement could be made on August 1 when the London Stock Exchange group will release its half-year financial results.
Thomson spokesman David Thompson declined to comment. Representatives from Silverfield, Blackstone and London Stock Exchange also declined to comment.
The merger will significantly expand the information services sector on the London Stock Exchange.
But the case involves risks.
The sources said that antitrust agencies in Europe and the United States should begin a thorough review that could last up to 18 months.
In the European Union, the agreement is expected to pbad a second-rate investigation, a more difficult review used only under agreements that fears a significant impact on competition, said two sources .
One source said that the EU was supposed to check if the transaction would affect the prices of the financial statements.
Investor groups in Europe are pushing for stock exchanges to reduce the prices of stock market data, so that the cost of setting up different platforms is reasonable.
Blackstone and other Reventiv investors will also face blackout periods. The first is expected to last until 2022, depending on the length of the antitrust review period.
Blackstone plans to close the deal after carefully examining the regulatory hurdles and the risk of a sharp fall in London equities if Britain leaves the EU without an agreement in October, three sources said. Reuters.
The operation has strategic advantages and will not be a quick profit taking as the US fund will continue to invest in the joint venture for at least another three or four years, the sources said. .
If the operation succeeds, Blackstone will double its initial investment in Reventive in nine months.
The Thomson Reuters board of directors discussed the deal and supported it, said a source.
On July 26, the company announced that a 30-year contract signed by Blackstone, under which Reinventive would obtain Reuters content, would be maintained under the terms of the new agreement.
Last year, Blackstone had bought Thomson Reuters a controlling stake in Reventive, as part of a deal valuing the company at $ 20 billion, including debt.
(Reuters)
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