London Stock Exchange Group plc or LSEG (LSE.L) announced a deal with Turquoise Trading Ltd. to create a new pan-European trading venture through a merger of the businesses of Turquoise and Baikal Global Ltd.
The company said the new venture will expand LSEG services across Europe in both lit and dark trading, and liquidity aggregation, with the express objective of driving European trading volume growth and promoting venue choice. Further, the new venture will benefit from synergies with LSEG infrastructure and the planned migration to MillenniumIT trading technology, the company added.
LSEG will fully fund the cash needs of the new venture within an agreed framework for the first 24 months from completion and plans to bring the business to sustainable profitability. In consideration for the transaction, the existing Turquoise shareholders will receive 40% of the issued share capital in the new company, which will become Baikal's holding company. The transaction is expected to close mid-February 2010.
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