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LSE on the hunt for buys after licking its wounds over Deutsche Börse

LSE boss Xavier Rolet (left) said the group had a strong start: Getty Images
LSE boss Xavier Rolet (left) said the group had a strong start: Getty Images

The London Stock Exchange today said it was back on the acquisitions trail, just weeks after its £24 billion merger with Deutsche Börse collapsed.

Boss Xavier Rolet said the company “remains actively engaged in exploring selective ongoing organic and inorganic investments in order to drive further growth”.

Rolet orchestrated the Deutsche Börse tie-up with counterpart Carsten Kengeter but European Union competition regulators killed it off in March.

They had fears it would create a “de facto monopoly” in the bond-clearing market.

It was the third time a merger between the two had failed and revived talk that the New York Stock Exchange owner ICE could swoop on the LSE. Stock exchange operators are looking to merge as trading volumes and margins decline.

Rolet’s comments came as the company, which also owns the FTSE Russell index-compiling businesses and clearing house LCH, reported a 19% rise in income to £458.7 million in the three months ended March 31.

LCH was the star performer, with income up 31%, while revenue from information services, including Russell, grew 24%.

“Lower trading levels” hit its capital markets arm, which earns fees from companies floating on its markets and stocks and bonds trading.

Revenues fell 4% when adjusted for currency swings. Rolet described the performance as a “strong start”.