London Stock Exchange Group sells 4.92% stake in Euroclear for €455m

London Stock Exchange Group Plc (LSEG) has completed the divestment of its 4.92 percent stake in Euroclear Holding SA/NV to TCorp.

TCorp is the financial services partner to the New South Wales government. J.P. Morgan and BNP Paribas acted as advisors to LSEG on the transaction worth €455 million.

Though LSEG did not state the reason for offloading the position in Euroclear, but its shares in LSEG were up 0.2 percent at 11,347.94 pence in London on Thursday morning. LSEG shares have risen by 22 percent in 2024.

LSEG, the London-based exchange operator and data provider, owns the London Stock Exchange, Refinitiv, LSEG Technology, FTSE Russell, and holds majority stakes in LCH and Tradeweb.

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Euroclear is a Belgium-based financial services company that specialises in the clearing and settlement of securities transactions. It was founded in 1968 as part of JP Morgan & Co.

LSEG is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system. It had bought its stake in Euroclear for €278.5 million back in January 2019, hoping at the time to ‘strengthen LSEG and Euroclear’s existing operational and commercial relationship’.

David Schwimmer, Chief Executive Officer, LSEG had told analysts in October that the 4.92 percent equity stake in Euroclear afforded his firm “no kind of control, no strategic position”, in contrast to the firm’s key post-trade asset, LCH, in which it owns a majority stake.