LSE to sell French arm of LCH to Euronext for $534 million

LONDON: Stock Exchange Group Plc agreed to sell its French clearing unit to Euronext NV for 510 million euros ($533 million) in cash, putting it on course to end a 13-year combination that the company hopes will pacify competition watchdogs.

LCH Clearnet SA’s sale requires Euronext shareholder and other approvals, according to a statement from Euronext Tuesday.

The deal may be completed by the end of the second quarter. The clearinghouse’s sale is an attempt to smooth the way for Deutsche Boerse AG’s $12 billion takeover of London-based LSE.

That deal would create Europe’s dominant operator in everything from indexes to stock markets and clearing, a vantage sought over the years by multiple chief executives.

The purchase “will diversify Euronext revenue streams and give us access to new asset classes,” CEO Stephane Boujnah said in a conference call, referring to fixed income and credit-default swaps markets.