LONDON Stock Exchange (LSE) said its proposed merger with Deutsche Boerse AG was unlikely to be approved by the European Commission, leaving the stock market operators’ third attempt at combining on the brink of failure.

    The LSE said in a statement late Sunday that the commission had asked it to sell its 60 percent stake in fixed-income trading platform MTS to satisfy antitrust concerns over the merger of Europe’s two largest market operators.

    Calling the request “disproportionate,” the British exchange said it believed that it would struggle to sell MTS and that such a sale would be detrimental to its ongoing business.

    “Based on the commission’s current position, LSE believes that the commission is unlikely to provide clearance for the merger,” it said.

    The exchange added that it would still work to make the merger with Deutsche Boerse succeed, but that would be impossible unless the commission changed its position.

    In a separate statement, Deutsche Boerse attributed the decision to LSE alone.

    LSE “resolved tonight to not commit to the required divestment of LSEG’s majority stake in MTS,” Deutsche Boerse said, adding that it expected a final decision from the commission by the end of March.

    The two exchanges announced plans to merge just over a year ago, aiming to create a giant trading powerhouse that would better compete against U.S. rivals that were starting to encroach on the pair’s turf. (SD-Agencies)