* LSE posts better-than-expected Q3 income
* Says well positioned for Brexit
* Refinitiv deal close expected in Q1, 2021
(Adds shares, background)
Oct 23 (Reuters) - The London Stock Exchange expects
to close its $27 billion purchase of data analytics company
Refinitiv in the first-quarter of next year, as the group
reported forecast-beating third-quarter income.
The Refinitiv deal will expand LSE's trading business and
make it a major distributor and creator of market data. The
transaction was announced last year but ran into regulatory
hurdles in Europe as regulators raised concerns about its market
share in European bond trading.
LSE this month agreed the sale of Borsa Italiana as part of
remedies to appease the European Union's antitrust authorities.
"We continue to engage constructively with the European
Commission and believe the potential divestment of the Borsa
Italiana group will contribute significantly to addressing the
EU's competition concerns," LSE Chief Executive David Schwimmer
said.
The LSE said Refinitiv, which is 45% owned by Reuters'
parent Thomson Reuters, is on track to hit $650 million in
annual cost savings by the end of the year.
LSE shares, which are up 10% year to date compared to a 23%
plunge in the wider bluechip index, edged 0.2% higher to
85.3 pounds by 0715 GMT.
Reporting third-quarter results, LSE said its total income
climbed to 600 million pounds for the three months ended Sept.
30, beating an analyst consensus of 592 million pounds. Its
post-trade division, which includes clearing house LCH, recorded
the strongest growth at 5%.
Revenue at the company's capital markets arm, which is the
smallest among LSE's major divisions in terms of contribution to
overall revenue, was flat. The exchange said equities trading
revenues were lower as a result of reduced market activity.
Market volatility, which in March shot up to levels last
seen during the 2008 financial crisis, has come down as
investors price in the economic impact of the coronavirus
crisis. Financial markets are also awaiting the outcome of the
U.S. election and how Brexit will play out.
LSE said it was well positioned for Brexit, with Britain's
transition arrangements with the European Union due to end on
Dec.31. The EU has already granted LCH permission to continue
clearing derivatives for customers in the bloc for a further 18
months.
(Reporting by Muvija M in Bengaluru
Editing by Rachel Armstrong and Jane Merriman)