Britain's competition body has said it would allow rival European stock market operators to bid for the London Stock Exchange under certain conditions.
After a seven-month enquiry into takeover plans by Deutsche Borse and Euronext, the Competition Commission said both companies would have to limit their control over LSE's clearing provider.
The report finds that the proposed acquisition of LSE 'would substantially lessen competition', as either merger would make it more difficult for other exchanges to compete with LSE in trading British stocks due to both bidders' direct control or influence over the provision of clearing services.
But it proposes measures to deal with this issue, saying Euronext would have dispose of its stake in LSE's existing clearing provider, LCH.Clearnet. Both companies would have to limit their shareholdings and board representation in any current or future LSE clearing provider.
Euronext said it would study the commission's report, and analyse the economic impact of the measures required.
