Refinancing shareholders will end up holding 37% of the London Stock Exchange. The all-share deal rates refinancing at $ 27 billion, including its debt.
The deal could give the London Stock Exchange the volume required to compete with industry heavyweight Bloomberg by combining the generated data with exchanges with Refinitive's sales and analytics. It will also strengthen the UK firm's position in foreign exchange and bond trading via the FXall and Tradeweb refinancing platforms.
The shares of the London Stock Exchange rose by 6% after the announcement of the deal.
Refinitively sells a competing product called Eikon.
The London Stock Exchange expects the deal to close in the second half of next year. Regulators are likely to scrutinize the takeover and its potential impact on market data costs.
Investors have objected to paying higher market data prices, some of which they believe are required to meet more stringent regulations.
"This reflects a significant and sustained shift in the trading venue revenue model, with market data now accounting for a significant and increasing share of their income," they added.