Hong Kong Exchanges makes £29.6bn bid for LSE

Andrew Cummings
September 11, 2019

One condition of Hong Kong Exchanges & Clearing £29.6 billion ($36.6 billion) bid for the London Stock Exchange is the rejection of the LSE's deal to acquire Refinitiv either be rejected by LSE shareholders or terminated.

HKEX says the combination would create a leading market infrastructure group with a global footprint and, crucially, close ties to China.

The LSE announced in August that it has agreed to buy Refinitiv in a $27 billion deal aimed at transforming the exchange into a market data and analytics giant. "The board of HKEX believes that the two businesses are highly complementary and as such, looks forward to working with the relevant authorities to deliver a clear path to completion", it added. The UK company's stock rose 6.2 per cent to 7,190 pence on Wednesday at 10.54 am in London, after earlier surging as much as 16 per cent. "Whilst HKEX already has a foothold in the United Kingdom via its ownership of the LME, the LSE is a different ball game entirely".

HKEX mentioned: 'The proposed mixture would strengthen each companies, higher place them to innovate throughout markets and geographies, and provide market individuals and traders unprecedented worldwide market connectivity'. As such, and not surprisingly, it will throw out a number of questions rather than answers at this stage'. 'The London Stock Exchange has historically fought off approaches from overseas, preferring instead to be the acquirer.

"In addition, the very nature of the Hong Kong approach will be subject to any number of considerations, such as competitive and regulatory issues".

LSE's board said it would consider the proposal and will make a further announcement in due course.

LSEG shares jumped by 15 percent - to just over £78 - after the news was made public, before falling back down to £72.

Other reports by iNewsToday