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Deutsche lowers LSE merger approval hurdle

German stock exchange Image copyright Getty Images

Deutsche Boerse has lowered the approval threshold for its merger with the London Stock Exchange (LSE) from 75% to 60% of its shareholders.

As a result, they now have an extra two weeks to accept, until 26 July.

The German exchange was concerned that the threshold could be hard to reach without its index fund shareholders.

They hold up to 15% of its shares, but will not be able to accept the offer until the minimum level of acceptances has already been reached.

The merger has already been backed overwhelmingly by LSE shareholders.

If it goes through, the tie-up will create the world's biggest exchange by revenue, forecast to be €4.7bn ($5.19bn) this year.

German shareholders had initially been given until Tuesday to accept the merger, which still needs approval from European Union authorities. It has already been passed by the US and Russia.

The two stock exchanges agreed a $27bn (£20bn) merger earlier this year, but the Brexit vote has raised questions about how it should be implemented.

The LSE said the deal would still deliver value to shareholders.

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