The London Stock Exchange is to buy a majority stake in LCH.Clearnet in a deal valuing the clearing house at 813 million euros (696.1 million pounds), the two firms said on Friday.

The LSE will hold up to 60 percent of LCH.Clearnet. It will pay 20 euros for each LCH.Clearnet share bought.

The maximum price paid by the LSE will be 463 million euros, which it said will be funded from existing resources and bank facilities.

The LSE entered exclusive talks to buy LCH.Clearnet in September.

(Reporting by Steve Slater; Editing by Sarah White)