London Stock Exchange owner sells off stake in Euroclear for £455m

The London Stock Exchange Group (LSEG) has offloaded its minority stake in financial markets infrastructure provider Euroclear, netting £455m from the sale.

The divestment of LSEG's 4.92% holding in the Belgium-based firm was announced on Thursday, with the stake being sold to TCorp, the investment and financial management partner of the New South Wales government in Australia, as reported by City AM.

This sale represents a significant return for LSEG, which purchased the stake for €278.5m (£241.9m) in 2019. The deal implies a valuation of approximately £9.25bn for Euroclear, a company that plays a crucial role in the global clearing and settlement of securities transactions, including bonds, equities, derivatives and investment funds.

LSEG initially invested in Euroclear to bolster its influence over core market infrastructure. Under the leadership of American banker David Schwimmer, who joined as CEO in 2018, LSEG has evolved into a data and analytics powerhouse with around 25,000 employees and operations in over 60 countries.

However, concerns have been raised about its flagship exchange, which has seen only 14 new firms list this year, marking one of its worst periods for IPO activity. Intercontinental Exchange, the owner of the New York Stock Exchange, also recently sold its stake in Euroclear for €709m, leading to companies owned by the French and Belgian governments becoming investors in the firm.