London Stock Exchange Group PLC (LSE:LSEG) shares rose 5.5% to 9,196p after it announced the sale of a 20% stake in its Post Trade Solutions arm to 11 global banks for £170 million, valuing the business at £850 million. The stock had been up as much as 9% earlier in the session.
The deal strengthens LSEG’s ties with its biggest clearing clients, including JPMorgan, Barclays, HSBC, Citi and Deutsche Bank, and mirrors the partnership structure behind its LCH clearing house.
Post Trade Solutions, which helps manage risk in the uncleared derivatives market, generated £96 million in revenue last year.
As part of the transaction, LSEG will pay £1.15 billion to increase its share of profits from SwapClear, its core interest rate swaps clearing service, with potential for another £200 million if growth targets are met.
The move will cut banks’ profit share from SwapClear to 15% in 2025 and 10% thereafter.
LSEG said the deal will lift earnings per share by 2–3% next year and improve margins further in 2026. Completion is expected in 2025.