(MENAFN- AFP) The London Stock Exchange Group said Monday that it has extended its deadline for a deal to buy 60 percent of British clearing house LCH.Clearnet.
The deadline for the transaction has been extended until January 31, from December 31, and either party can withdraw from the deal before then without penalty, the company said in a statement.
LSEG added that it has also agreed to lower its offer to 15 euros per share, down from an original offer of 20 euros that was agreed back in March.
The change in terms comes after weeks of new negotiations between the LSEG and LCH over the price, triggered by regulatory changes in Europe.
The lower price reflects the higher costs that LSEG would likely face as a result of new regulations increasing the financial buffer that clearing houses must set aside to cover risks of default.
Clearing houses play a key role in the transaction of shares between two parties, charging clients a fee to guarantee deals should one side default.
- Dow Jones Newswires contributed to this report -
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