* LSEG chairman expects merger by early 2017
* Brydon says Brexit wouldn't affect deal
* Analysts question if EU will approve deal
(Adds annual meeting)
By Noor Zainab Hussain
LONDON, April 27 (Reuters) - The London Stock Exchange Group stuck to its guns on Wednesday over its planned merger with Deutsche Boerse, saying the deal would be derailed by neither regulators nor any British exit from the European Union.
In its first annual shareholder meeting since mapping out a plan in February to create a $30 billion cross-border exchange group, the group tried to ease concerns over the tie-up.
Analysts have questioned whether EU competition regulators would approve the deal given the large presence the merged group would have in clearing derivatives trades.
"We wouldn't be embarking on a merger if we thought there would be any problems," LSEG Chairman Donald Brydon said in response to a shareholder's question on clearing.
Britain, home to Europe's biggest financial centre, votes on June 23 on whether to remain in the EU. Any vote in the referendum to leave the bloc could create major uncertainty for the country's financial services industry.
Asked if he thought a UK exit from the bloc or "Brexit" would affect the planned merger, Brydon replied: "No".
Brydon still expects the merger to be completed by the end of 2016 or early in 2017.
The U.S.-based Intercontinental Exchange
ICE.N
said in March it was considering a counter-offer for LSEG.
LSEG Chief Executive Xavier Rolet remained silent throughout Wednesday's meeting, following comments he made in a media interview that were critical of ICE.
The company issued a "clarification statement" on Monday after discussions with Britain's Takeover Panel about recent comments made by Rolet, who will retire if the deal goes ahead.
It said Rolet's views in one interview regarding ICE were his own, and that he has held no discussions with the U.S. exchange regarding its strategy.
ICE was not mentioned at Wednesday's meeting, which focused on matters such as cyber threats, climate change and how to get more listings.
LSEG is due to hold an extraordinary general meeting of shareholders in the coming weeks to vote on the merger. ICE would have to present any bid a week before that meeting.
LSEG reported a rise in first-quarter revenue on Wednesday, helped by growth at its FTSE Russell, capital markets and clearing units.
The company, which also owns Borsa Italiana, said revenue rose 8 percent to 358.9 million pounds ($522.4 million) in the three months to March 31, beating company-supplied average estimates of 350.1 million pounds.
Revenue at its capital markets division, which makes money from fees paid by companies listing on its markets and trading of stocks and bonds, rose 8 percent to 92.4 million pounds.
LCH.Clearnet, the clearing house controlled by LSEG, saw revenue increase by 14 percent with growth coming from a rise in volumes of over-the-counter derivative products.
Revenue from information services, which includes the FTSE index business, rose 10 percent to 141.5 million pounds.
Technology services provided the only weak spot, with revenues down 17 percent, hurt mainly by the timing of customer deliveries.
($1 = 0.6870 pounds)
(Writing by Huw Jones; editing by Sinead Cruise, Jason Neely and David Stamp) ((noor.hussain@thomsonreuters.com; Within UK +44 20 7542 1810; Outside UK +91 80 6749 2764; Reuters Messaging: noor.hussain.thomsonreuters.com@reuters.net))
* Brydon says Brexit wouldn't affect deal
* Analysts question if EU will approve deal
(Adds annual meeting)
By Noor Zainab Hussain
LONDON, April 27 (Reuters) - The London Stock Exchange Group stuck to its guns on Wednesday over its planned merger with Deutsche Boerse, saying the deal would be derailed by neither regulators nor any British exit from the European Union.
In its first annual shareholder meeting since mapping out a plan in February to create a $30 billion cross-border exchange group, the group tried to ease concerns over the tie-up.
Analysts have questioned whether EU competition regulators would approve the deal given the large presence the merged group would have in clearing derivatives trades.
"We wouldn't be embarking on a merger if we thought there would be any problems," LSEG Chairman Donald Brydon said in response to a shareholder's question on clearing.
Britain, home to Europe's biggest financial centre, votes on June 23 on whether to remain in the EU. Any vote in the referendum to leave the bloc could create major uncertainty for the country's financial services industry.
Asked if he thought a UK exit from the bloc or "Brexit" would affect the planned merger, Brydon replied: "No".
Brydon still expects the merger to be completed by the end of 2016 or early in 2017.
The U.S.-based Intercontinental Exchange
LSEG Chief Executive Xavier Rolet remained silent throughout Wednesday's meeting, following comments he made in a media interview that were critical of ICE.
The company issued a "clarification statement" on Monday after discussions with Britain's Takeover Panel about recent comments made by Rolet, who will retire if the deal goes ahead.
It said Rolet's views in one interview regarding ICE were his own, and that he has held no discussions with the U.S. exchange regarding its strategy.
ICE was not mentioned at Wednesday's meeting, which focused on matters such as cyber threats, climate change and how to get more listings.
LSEG is due to hold an extraordinary general meeting of shareholders in the coming weeks to vote on the merger. ICE would have to present any bid a week before that meeting.
LSEG reported a rise in first-quarter revenue on Wednesday, helped by growth at its FTSE Russell, capital markets and clearing units.
The company, which also owns Borsa Italiana, said revenue rose 8 percent to 358.9 million pounds ($522.4 million) in the three months to March 31, beating company-supplied average estimates of 350.1 million pounds.
Revenue at its capital markets division, which makes money from fees paid by companies listing on its markets and trading of stocks and bonds, rose 8 percent to 92.4 million pounds.
LCH.Clearnet, the clearing house controlled by LSEG, saw revenue increase by 14 percent with growth coming from a rise in volumes of over-the-counter derivative products.
Revenue from information services, which includes the FTSE index business, rose 10 percent to 141.5 million pounds.
Technology services provided the only weak spot, with revenues down 17 percent, hurt mainly by the timing of customer deliveries.
($1 = 0.6870 pounds)
(Writing by Huw Jones; editing by Sinead Cruise, Jason Neely and David Stamp) ((noor.hussain@thomsonreuters.com; Within UK +44 20 7542 1810; Outside UK +91 80 6749 2764; Reuters Messaging: noor.hussain.thomsonreuters.com@reuters.net))
