Deutsche Boerse Asia plans sidelined by LSE merger effort

By Jonathan Gould and Andreas Kröner

FRANKFURT, Sept 27 (Reuters) - Deutsche Boerse (LSE: 0H3T.L - news) 's expansion plans in Asia have been moved to a side track as the German exchange operator focuses on its $27 billion merger with the London Stock Exchange (Other OTC: LDNXF - news) , three sources familiar with the situation said.

China's foreign exchange trading operator CFETS and Deutsche Boerse signed an agreement last October to establish a 50-50 joint venture in Germany to connect their markets and spur product innovation. The plan was to launch the JV this year but this has now been delayed, the people said.

"The project is on ice for now," one of the people told Reuters. "The Chinese side wants to wait to see if and how the merger with the LSE moves ahead."

Deutsche Boerse said the project was continuing. The China Foreign Exchange Trade System, a unit of China's central bank, was not immediately available for comment. (Editing by Georgina Prodhan)