LSE says Deutsche Boerse deal unlikely

London

LONDON Stock Exchange Group Plc (LSE) said its US$13 billion tie-up with Deutsche Boerse AG is unlikely to proceed after a new regulatory hurdle signalled a potential end to the companies' efforts to create a champion European exchange.

European Union officials had requested that LSE divest MTS, an electronic trading platform for European government bonds. LSE said it couldn't commit to such a divestment and would not submit a remedy proposal.

"Based on the commission's current position, LSEG believes that the commission is unlikely to provide clearance for the merger," LSE said on Sunday in a statement.

The deal emerged a year ago, months b…