Refinitive shareholders will end up owning a 37% stake in the London Stock Exchange. The alliance agreement values Refinitive at $ 27 billion, including debt.
The agreement can provide the London Stock Exchange with the scale needed to compete with industry-heavy Bloomberg by combining the generated data at the exchange with Refinitive Distribution and Analysis. It will also strengthen the UK's position in foreign exchange and fixed income trading through Refinitiv's FXall and Tradeweb platforms.
Shares on the London Stock Exchange rose 6% after the deal was announced.
Refinitive sells a competing product called Eikon.
The London Stock Exchange said it expects the deal to end in the second half of next year. Regulators are likely to review the acquisition and its potential impact on market data costs.
Investors have objected to paying higher prices for market data, some of which say they are necessary to comply with stricter regulations.
"This reflects a significant and ongoing shift in the revenue model for retail outlets, with market data now accounting for a significant and growing share of revenue," they added.
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