LONDON: The London Stock Ex­­change’s merger with Deutsche Boerse appears to be “dead in the water”, a source close to the matter told AFP on Mon­­­day, after the LSE declared it would not meet an EU antitrust demand.

In a shock announcement on Sunday, the LSE said it was “highly unlikely” it would meet the European Commission’s request to divest its majority stake in Italian trading platform MTS.

The LSE argued that the sale — aimed at addressing competition fears — would be a disproportionate move and harm its business.

The blockbuster merger, unveiled to much fanfare last year and vigorously backed by both sides even in face of Brexit, now appears set to be blocked by Brussels.

An EC spokesman stressed that its assessment was ongoing and no decision had yet been taken.

Nonetheless, “it looks dead in the water,” a source with knowledge of the matter told AFP on condition of anonymity.

“Officially, the talks go on with the Commission, but what the LSE have said is a reasonable assumption.

“The EC asks for an important remedy. If the LSE cannot supply it, then it is going to hard to backtrack.”

BThird time unlucky B It is the third time that the Frankfurt and London stock exchanges have tried to tie the knot, following two unsuccessful attempts in 2000 and 2005.

Published in Dawn, February 28th, 2017