Draghi fears loss of EU oversight in LSE/Deutsche Boerse merger
European Central Bank President Mario Draghi has added fresh concerns to the potential £21bn merger of Deutsche Boerse and the London Stock Exchange. He fears the business could pass out of EU oversight, particularly following the UK's decision to leave the European Union.

Takeover: Deutsche Borse is seeking to seize control of 216-year-old LSE

A German takeover of the London Stock Exchange faced a fresh barrier last night after European bank chief Mario Draghi raised questions about the £21billion deal.

Deutsche Boerse is seeking to seize control of 216-year-old LSE in what both sides call a merger of equals.

But Deutsche shareholders will get a controlling stake and their chief executive will run the business.

European Central Bank president Draghi is concerned the business could pass out of EU oversight.

'When a merger leads to a change in ownership of a euro area bank, as could be the case for entities within Deutsche Boerse and LSE Group that are licensed as banks, the ECB has to analyse it carefully,' he said.

'The UK's withdrawal from the EU may lead to a loss of oversight and supervision of UK central counterparties by the ECB.

'Thus, it will be important to find solutions that at least preserve, or ideally enhance, the current level of supervision and oversight.'