Hong Kong Stock Exchange makes unexpected USD 36.6 bln bid for London Stock Exchange
China Knowledge Online
Sep 12, 2019

Sep 12, 2019 (China Knowledge) - Hong Kong Exchanges and Clearing (HKEx) has made a surprising USD 36.6 bln takeover bid for London Stock Exchange (LSE), a bold move for Asia’s third-largest capital market to become a global financial market.

HKEx said in a statement yesterday that it makes an indicative offer to pay GBP 83.61 for each LSE share, representing a 22.9% premium on the closing price of LSE on Tuesday. LSE’s board that “remains committed to” acquisition of data provider Refinitiv which could be aborted by the Hong Kong bourse’s offer. Meanwhile, the UK group, regards the HKEx’s offer unsolicited, preliminary and highly conditional, said it would make a further consideration and announce the decision later.

The takeover of LSE is aligned with the three-year plan put forward by the HKEx Chief Executive Officer Charles Li’ in February this year, aiming to shape Hong Kong into a more global financial hub. He said in a statement that the combination of HKEx and LSE would connect east and west, creating a more diversified market to offer customers greater innovation, risk management, and trading opportunities.

The achievement of the deal would extend the trading hours for investors between Asia and Europe to 18 hours. Moreover, such a merger will grant great benefits to Chinese companies, making it easier for global investors to trade on the LSE in the future.

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