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Market Update

Lloyds to Acquire MBNA for 1.9 B, LSE to Sell Derivatives Clearing House

Author: Sarla Buch
Last Update: 11:48 AM ET December 20 2016

4:00 PM Frankfurt Innovia agreed to be acquired by Canada-based CCL. Lloyds Banking agreed to acquire MBNA for 1.9 billion. London Stock Exchange is in talk sells its derivative clearing house LCH to Euronext. Total to buy 23% stake in Tellurian Investments.

In London trading, FTSE 100 index gained 22.97 or 0.3% to 7,041.12 and in Frankfurt the DAX index rose 28.51 or 0.2% to 11,455.32.

In Paris, CAC 40 index increased 27.68 or 0.6% to 4,850.45.

Innovia Group (Holding 1) Limited, the privately held BOPP films and polymer banknote maker agreed to be acquired by Canada-based label and packaging maker CCL Industries Inc for 810 million or C$1.13 billion.

The transaction is expected to close by the end of first-quarter 2017.

Lloyds Banking Group Plc jumped 2.9% to 64.37 pence after the U.K.-based banking and financial services provider agreed to acquire MBNA Ltd for about 1.9 billion or $2.35 billion from Bank of America Corp.

""The acquisition advances our strategic aim to deliver sustainable growth as a U.K. focused retail and commercial bank,"" chief executive officer Antonio Horta-Osorio said.

The bank said the acquisition will increase group revenue by 650 million per year and boost its net interest margin.

London Stock Exchange Group Plc fell 0.6% to 2,771 pence after the U.K.-based stock market operator said today that it is in exclusive talks to sell its France-based derivative exchange and clearing house LCH SA to pan-European exchange operator Euronext NV.

However, the financial terms are not yet disclosed but the exchange is estimated to be valued between 335 million or between 400 million and 600 million.

Novartis AG gained 0.9% to 74.40 Swiss Franc after the Switzerland-based drug-maker said it has entered into a collaboration and license agreement with the U.S.-based smaller rival Conatus Pharmaceuticals Inc for $50 million to develop new oral treatments for chronic liver diseases.

Total SA advanced 1% to 48.38 after France-based oil and gas explorer agreed to acquire approx 23% stake in the U.S.-based privately held rival Tellurian Investments Inc at $5.85 per share or about $207 million to develop an integrated gas project.

The transaction is expected to close in the first-quarter of 2017.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc