FIRST AIRED: February 27, 2017

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00:00:01
>> The London Stock Exchange's 29 billion Euro merger with Deutsche Boerse in jeopardy Monday, after quote, disproportionate demands from Brussels. The LSE warning it's highly unlikely to be able to meet anti-trust conditions, set by the European Commission. It wants the LSE to sell its 60% stake in Italy's MTS or the merger to go ahead.
00:00:24
But the British exchange said it would struggle to sell the stake and that a sale would be detrimental to its ongoing business. Reuters regulation correspondent Hugh Jones.>> Who knows if this is a real reason or not. They have some very, very tricky issues coming up, not to do with the vetting of the process by Brussels but sort of where should the headquarters be located?
00:00:46
The German regulators want the headquarters in Frankfurt. That would look very bad for the LSE especially since it is coming European Union.>> Deutsche Boerse releasing a statement, saying that the LSE had resolved to not commit to the required diversement. The two exchanges announced plans to merge just over a year ago, aiming to create a giant trading powerhouse that would better compete against US rivals, that were starting to encroach on the pairs turf.
00:01:13
The exchanges had already agreed to sell part of LSE's clearing business, in order to satisfy antitrust requirements.>> So the LSE is in good shape, it's a very diverse company. It may want to do more acquisitions. I think the problem may be for Deutsche Boerse, it's repeatedly failed to acquire other companies or make acquisitions work in the States, there'll be big question marks.
00:01:38
>> The European Commission declined to comment.