London Stock Exchange PLC (LON:LSE) has confirmed advanced talks over a US$27bn all-share takeover of financial data firm Refinitiv.
LSE said that by revenue the merger would form the world’s largest listed global financial markets infrastructure provider.
Refinitiv currently is owned by Thomson Reuters (45%) and 55% by fund manager Blackstone’s private equity arm.
Blackstone would emerge as the largest shareholder in the enlarged group while Thomson Reuters would have 15%.
Refinitiv has more than 40,000 customers across a range of financial services and the enlarged group would also be able to challenge Bloomberg in the provision of data, news and research.
Combined annual revenues were more than £6bn in 2018 and the LSE predicts cost savings of over £350mln alongside a strong boost to earnings in the first year after completion.
Any deal, however, is likely to face close regulatory scrutiny both in the Europe and the US.
Blackstone bought its majority stake in Refinitiv a year ago but the merger terms would effectively double the US$17.3bn it paid then.