Job cuts in LSE-Deutsche Boerse merger

The London Stock Exchange Group (LSE) has said its forthcoming merger with Deutsche Boerse could lead to as many as 1,250 job losses.

The tie-up, announced in March, is expected to be completed by the end of this year or early 2017.

It will create one of the world's largest exchange companies with a combined value of about £21bn.

Each of the two companies has more than 5,000 staff.

The LSE said its shareholders would be asked to approve the merger on 4 July.

It added that the deal was expected to produce €250m in annual cost savings in five years, with €160m of those savings achieved by year three.

If the deal goes ahead, LSE shareholders will own 45.6% of the new holding company, while Deutsche Boerse shareholders will own 54.4%.

The two companies said together they should be able to make cost savings of €450m (£354m) a year - about 20% of the combined group's operating costs of €2.2bn last year.

The LSE group already owns Milan-based Borsa Italiana.

The newly merged company will keep both the London and Frankfurt headquarters. The new holding company, UK TopCo, will be incorporated in the UK.