The bid for the London Stock Exchange – Deutsche Boerse headquarters to be moved to Frankfurt has been revisited, this time by the finance minister of the State of Hesse, the location of Deutsche Boerse. Thomas Schaefer said it is obvious the headquarters needs to be in Germany. “Those involved in London must recognise, also in their own interests, that it would not be a good idea to keep the plans as they are now,” Schaefer said when speaking to Reuters. “This might be legally complicated,” he added. “But where there’s a will, there’s a way.” The current agreement has the headquarters in London, as Deutsche Boerse shareholders own 54.4 percent of the company and its Chief Executive, Carsten Kengeter retains his role.
The deal was negotiated despite the Brexit vote of last June, but the announcement of British Prime Minister Theresa May of a hard Brexit has changed the scale. German politicians maintain they had been informed that the headquarters would remain within the EU. Under the current agreement, while the legal headquarters might not change, Hesse will be in charge of major policies affecting the Frankfurt Stock Exchange and Eurex, the clearing house. Schaefer is keen for Frankfurt to have more control over the company, which is a merger and not a takeover. The deal is still awaiting regulatory approval from Hesse, the state where Frankfurt is located, and the European Commission. The deal has had its fair share of controversy. The home and office of Deutsche Boerse’s CEO were raided by police as part of an investigation into his purchase of more shares of the company before news of the merger was announced to the public. Deutsche Boerse insisted it was part of a pre-arranged compensation package and didn’t expect it to affect the outcome.