Deutsche Boerse, LSE Caught in Brexit Political Crossfire

As Deutsche Boerse AG’s $13 billion takeover of London Stock Exchange Group Plc teeters on the verge of collapse, there’s only one thing participants agree upon: LSE’s explanation is only part of the story.

While an LSE statement cited impossible regulatory demands, half a dozen people familiar with the discussions say that obscured other hurdles. These include a stalemate over the location of the headquarters, which was magnified when the U.K. voted to leave the European Union. That decision exposed key parts of the business, like euro clearing, to political riptides, said the people who asked not to be named because the talks are private.