Deutsche Börse plans €200m share buyback after failed LSE merger

Deutsche Börse is to reward shareholders with a €200m share buyback programme following the end of its planned merger with the London Stock Exchange Group.

The German exchange, Europe’s largest by market capitalisation, said in an earnings statement after the close on Wednesday it would begin buying shares in the second half of the year, echoing a move already taken by its UK rival.

The LSE announced a share buyback of £200m when its deal with DB was terminated to compensate shareholders who had been promised a special dividend from the merger. The plan to unite the biggest market operators in London and Frankfurt was blocked by the European Union after the British exchange did not meet demand from Brussels’ antitrust regulators.

The purchase comes as the German exchange prepares to address shareholders at its annual meeting in Frankfurt next month. Glass-Lewis, the shareholder advisory service, recommended voting against the actions of the board after the failed bid and the launch of an insider trading investigation against chief executive Carsten Kengeter, according to a report on Tuesday from Handelsblatt.

The funds will come from the €1bn it received from Nasdaq last year for the sale of the International Securities Exchange, a US options trading venue.

For the three months to March 31, Deutsche Börse said net revenue rose 2 per cent to €623m while consolidated net profit rose 5 per cent to €232.2m. It also reiterated its forecast of earnings growth of 10- 15 per cent for this year and next year.