LSE shareholders back Deutsche Boerse merger

There were fears the EU referendum would derail the deal worth £21bn

A worker shelters from the rain as he passes the London Stock Exchange in the City of London at lunchtime (Reuters)

London Stock Exchange shareholders have approved the company's merger with Deutsche Boerse.

There were fears the EU referendum would derail the deal worth £21 billion.

The combined group is expected to be based in London and chaired by Donald Bryson, LSE chairman.

The merger, first announced in February, will create a European powerhouse in trading stocks, bonds and other financial instruments to rival exchanges of similar size in Asia and the US.

Almost all the votes cast, some 99.89 per cent, were in favor of the Deutsche Boerse deal.

The agreement comes 16 years after the pair first attempted a tie-up. It brings together LSE's strength in share trading with Deutsche's Eurex derivatives trading arm in what they have called a "highly complementary combination".

US exchange groups, including New York Stock Exchange owner International Exchange and CME Group, which owns the Chicago Mercantile Exchange, were also said to be considering a tilt at the LSE, but neither has confirmed an interest.

They expect to make £353 million in cost savings a year thanks to the deal.

There are reports the deals could result in as many as 1,250 job cuts across the companies.