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LSE says Deutsche Boerse merger could mean 1,250 job cuts

London Stock Exchange Group said its planned $30 billion merger with German rival Deutsche Boerse could result in 1,250 job cuts across the combined group and should eventually lead to 250 million euros ($279.48 million) in revenue benefits a year.

LSE, which agreed in March to merge with Deutsche Boerse to create a pan-European trading house, said it expected to achieve these benefits in the fifth year after the deal is completed.

The company, which owns Borsa Italiana and the London Stock Exchange, said about 160 million euros per year would come by the third year after the deal closes.

The revenue benefits would come from the combination of the combined group's index and information services business including he FTSE Russell and STOXX indexes.

They would also come from the development of trading and clearing products, LSE said. LSE reiterated its expectations for cost savings of 450 million euros annually from the third year.

It said that while there would be job cuts, 200 new roles could also be created because of growth plans.

LSE, which has its headquarters in London, employs about 5,550 staff, according to its 2015 annual report. Deutsche Boerse has around 5,283 staff, according to its annual report for 2015.

The boards of the London Stock Exchange and Deutsche Boerse confirmed on Tuesday that they are discussing a potential merger.
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The boards of the London Stock Exchange and Deutsche Boerse confirmed on Tuesday that they are discussing a potential merger.

LSE's shareholders will be asked to approve the merger on July 4, the company said.

The deal is not conditional on the outcome of Britain's referendum on June 23 on membership of the European Union, it said.

Britons will vote on June 23 on whether to stay in the 28-member EU, a choice with far-reaching consequences for politics, the economy, defence and diplomacy in Britain and beyond.

Shares in LSE Group were down 1.2 percent at 2701 pence by 1310 GMT. They were earlier down as much as 2.1 percent.