DTCC to Seek Other Strategic Alternatives
The Depository Trust & Clearing Corporation (DTCC) and LCH.Clearnet Group, Ltd. have been working toward completing the due diligence necessary to finalize an agreement for their proposed merger since the announcement of a Heads of Terms in October 2008. In December 2008, LCH.Clearnet terminated the exclusivity agreement to permit it to enter into dialogue with another party. DTCC’s intent, however, was that the merger as envisioned would still be consummated and accordingly, DTCC continued to complete its due diligence on a non-exclusive basis.
DTCC has continually communicated its desire to complete a successful merger to both the management and to the Board of Directors of LCH.Clearnet. However, LCH.Clearnet has not agreed on a basis for consummating the proposed merger with DTCC and, after consultation with our Board of Directors, regrettably DTCC sees no choice but to pursue other strategic alternatives to develop seamless transatlantic clearing services to support the needs of our customers and the industry.
DTCC continues to believe that its proposed merger with LCH.Clearnet would have delivered the broadest mix of tangible clearing capabilities and potential IT synergies to support trading across multiple asset classes.
DTCC continues to have a high regard for our colleagues at LCH.Clearnet and we hope there will be opportunities in the future where our organizations will be able to collaborate.