After TMX failure, LSE nets Clearnet

THE London Stock Exchange (LSE) yesterday agreed to buy a majority stake in stock market clearing house Clearnet for a maximum of £386 million.

Analysts said the deal was in line with the LSE’s strategy of diversification and having “horizontal” business activities connected with each other.

They said Clearnet was also a “trophy” consolation prize for the LSE’s aborted C$3.6 billion (£2.3bn) acquisition attempt on Canadian peer TMX last year.

The LSE said it would hold up to 60 per cent of Clearnet, offering its owners €20 a share – implying a total value on the unlisted company of €813m (£681m).

LSE boss Xavier Rolet, who was bitterly disappointed shareholders turned down his bid for TMX, said yesterday: “This transaction delivers on our promise of 2009 to expand our operations.”