by Dramelin 6:30 AM 0 comments

The original merger terms specified that the combined company would be run by Deutsche Boerse`s CEO, Carsten Kengeter, a decision seen as part of a trade-off that would ensure London became the group`s main headquarters.
A spat over which city would claim the headquarters of Europe`s new trading giant is widely seen as the key reason behind the likely abandonment of the London Stock Exchange`s (LSE) 29 billion euro ($31 billion) merger with Deutsche Boerse.
Deutsche Boerse`s surprise at the LSE`s refusal suggests that the action was taken unilaterally, however, recent months have simultaneously seen growing political discomfort within Germany over the notion of the U.
K.
assuming the combined group`s headquarters.
While a soothing result for Britain, it was a less palatable sell to the Germans, whose sensitivities regarding the location had spiked in the wake of the Brexit vote.
Industry insiders claim that there was a mistaken belief within some circles in Germany that giving up the headquarters to the U.
K.
was a short-term concession that could be reversed once the deal had completed.