(MENAFN- Kuwait News Agency (KUNA)) BRUSSELS, March 29 (KUNA) -- The European Union decided Wednesday to prohibit proposed merger between the German stock exchange Deutsche Boerse and London Stock Exchange Group because it would have created monopolies.
"The European economy depends on well-functioning financial markets. It is not just important for banks and other financial institutions. It is important for the whole economy. It's the whole economy that benefits from the ability for businesses to raise money on competitive financial terms," Margrethe Vestager, EU Commissioner for Competition, told a news conference.
"The Commission cannot allow the creation of monopolies and this is what would have happened in this case. This is why we have prohibited this merger for the benefit of competition in Europe in financial markets to the benefits of European businesses and therefore also European citizens," she said.
Vestger noted that the Deutsche Boerse and London Stock Exchange are basically the only companies that provide fixed income clearing services in Europe. Last year 3.4 trillion euros worth of bonds traded alone was cleared in the European economic area. Almost all of that was cleared by houses of the Deutsche Borse and London Stock Exchange Group. Our second concern was also the resort of this de facto monopoly in fixed income clearing.
She also expressed concern that the merger would have reduced competition for trading .
The blocking of the merger comes the same day when UK Prime Minister Theresa May signed a letter that will trigger the Brexit. (end) nk.rk
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