* Deal creates stronger competitor in data to Bloomberg
* EU says remedies address competition concerns
* LSE has agreed to sell Borsa Italiana to Euronext
(Adds detail, Euronext comment, LSE shares)
By Philip Blenkinsop and Huw Jones
BRUSSELS/LONDON, Jan 13 (Reuters) - EU antitrust regulators
gave the green light on Wednesday to the London Stock Exchange's
$27 billion takeover of Refinitiv, creating a stronger
competitor to financial data leader Bloomberg LP.
The market for financial information has exploded with the
advent of computer-driven trading, triggering a flurry of
takeovers as companies seek to create one-stop shops to serve
clients and get an edge over traditional rivals in supplying
data, dubbed the "new oil".
The European Commission, which oversees competition policy
in the 27-nation European Union, said its investigation found a
number of concerns about the deal but that they would be
addressed by "remedies", including the sale of LSE's Borsa
Italiana, which runs the Milan stock exchange.
"Infrastructure competition in trading services and access
to financial data products on fair and equal terms is essential
for the European economy and in particular for consumers and
businesses," said Margrethe Vestager, the EU's competition
chief.
A combined LSE and Refinitiv will still be eclipsed
by Bloomberg LP, but will outrank a combination of S&P and IHS
Markit, whose $44 billion tie-up was announced last year.
The LSE said the deal remained subject to a small number of
merger control and financial regulatory authority approvals and
was expected to complete in the first quarter of this year.
LSE shares were up 1.7% at 9,132 pence, outshining the FTSE
100 blue chip index it compiles.
Refinitiv, which is 45%-owned by Reuters News' parent
Thomson Reuters, referred requests for comment to the LSE.
Pan-European bourse Euronext has already agreed to
buy Borsa Italiana for 4.3 billion euros ($5.2 billion), subject
to the Refinitiv takeover getting the green light.
Euronext said the EU approval improved the certainty of
completing that deal, which is still subject to regulatory
approvals in several jurisdictions and from its regulators.
Euronext expects to complete the acquisition in the first
half of 2021.
The Commission scrutinised trading in government bonds as
the LSE owns the MTS platform, while Refinitiv controls
Tradeweb.
The sale of Borsa includes offloading MTS to Euronext, which
"fully removes" the overlap, the Commission said.
The LSE has also agreed to continue offering its global
over-the-counter interest rate derivatives (OTC IRD) clearing
services performed by LCH Swapclear on an open-access basis.
It will additionally provide access to the LSE venue data,
FTSE UK Equity Indices and WM/R FX benchmarks to all existing
and future downstream competitors.
The duration of the OTC IRD and financial data commitments
is 10 years.
"The commitments offered by LSEG (LSE Group) fully address
the competition concerns raised by the proposed transaction,"
the Commission said. "The Commission therefore concluded that
the transaction, as modified by the commitments, would no longer
raise competition concerns."
The commitments also include a fast track and binding
dispute resolution mechanism for third parties who believe the
London exchange does not comply with the commitments, the EU
executive said.
($1 = 0.8216 euros)
(Reporting by Philip Blenkinsop and Huw Jones; Editing by
Pravin Char and Mark Potter)
