SHURELY SHOME COINSHIDENCE?
London Stock Exchange Group Plc is in merger talks with Deutsche Boerse AG, a tie-up that would create one of the biggest exchange companies in the world. The deal is, predictably, being played down with the standard “discussions between companies don’t necessarily mean a deal will take place”, but with all disrepect that’s hogwash: the CEOs of both companies are keen deal makers, and the two companies issued a positive joint statement saying they were ‘considering a merger of equals’ – with a consequent huge hike in the share value of both companies.
Being a through-the-rock campaigner for small creative over big process, I see this as reason #121 for #Brexit. It’s yet another move to put more power into fewer hands, shut out the small investor, gain power at the expense of international regulation, and increase the capital available to globalist giants while starving smaller more entrepreneurial companies.
Lest we forget, Deutsche Boerse tried to merge with NYSE four years ago; then, the EC blocked the deal. But with both Frankfurt and London on board next time, I doubt if they would…Paris might try, but it’d be outvoted. What we’re looking at here is not so much the thin end of the wedge, as the Big End of the snowsledge.
But for others with the opposite view among the Leavers, it will also offer further proof that Britain does not need to be an EU member to remain a big dealmaker in global capital markets. Unless, of course, the LSE and DBAG use these ‘talks’ to make a highly controversial political point: that the deal depends on the UK remaining part of the European Union.
That’s not in any way wild speculation: Boris opting to be a Leaver is one thing….but he won’t be Mayor for much longer, and there is no doubt that 90+% of senior City players are all for staying in the Might Is Right big battalions. Along with anti-Goliath slingshot man Nick Wilson, I would be staggered if the HSBC hobgoblins didn’t know this deal was in the air when they chose to opt for London as a continuing HQ; and I’d be amazed if both Osborne and Cameron hadn’t been at the very least tipped the wink.
This needs consideration in the Out camp, which is why for once BoJo really can be asset if he can squirrel this out. As time moves on to June 23rd (it’s 121 – one for each Brexit reason) the Leave campaign needs not just leadership and focus, but also constant choice of players comfortable and credible in their strongest positions.
It could come to nothing or pan out either way: but this could well represent highly convenient timing by the Status Quo Mob….and we would all to well to expect dirty tricks rather than be appalled by them.