The U.K.'s decision to leave the EU has strengthened theeconomic rationale behind LondonStock Exchange Group Plc's and Deutsche Börse AG's proposed merger, according to Deutsche Bundesbank board member Andreas Dombret.

"Once the U.K. has left the European Union, bridgesbetween both economies will be more important than ever before," Dombretsaid at a banking conference in Frankfurt. "The announced merger of LSEand Deutsche Börse has the potential to become such a bridge."

He did, however, note that the Leave vote did pose newcorporate governance challenges for the merger and advised the parties "tofind a governance structure which balances all reasonable interests — even atthe expense of synergies."

He added that Brexit will likely result in London losingeuro trading and clearing activities and that Frankfurt was a likely alternative.