Euronext NV, an Amsterdam-based stock exchange, has made an irrevocable all-cash offer to LCH Group Ltd. and its majority owner, London Stock Exchange Group, to buy French clearing subsidiary LCH SA.
LCH has launched a period of consultation, during which LSEG and LCH Group have granted exclusivity to Euronext, said a regulatory filing Tuesday.
Euronext has offered an all-cash consideration of €510 million ($533 million), which will be adjusted for surplus regulatory capital movement between June 30, 2016, and completion of the deal.
The proposed sale is conditional upon the receipt of various regulatory and other consents and approvals, and is also subject to review and approval by the European Commission, related to the recommended merger of LSEG and Deutsche Boerse AG. That merger was announced March 16, 2016. A spokesman for LCH said the acquisition is contingent on the completion of the LSEG and Deutsche Bourse deal.
LCH Group is a multiasset, global operator of central counterparties, and has subsidiaries in the U.K., U.S., France and Italy.
LCH SA acts as the clearinghouse for regulated markets in France, the Netherlands, Belgium and Portugal, across asset classes including fixed income, commodities and equity derivatives.