Hong Kong Stock Exchange offers $36.6 billion for London Stock Exchange

Показать описание

Hong Kong Exchanges and Clearing (HKEX) has made a surprise takeover bid for the London Stock Exchange Group (LSE.L), proposing to merge the two companies.

The LSE’s shares soared more than 10% on news of the proposed offer from the Hong Kong exchange group, which would see it valued at around £31.6bn.

Charles Li, chief executive of HKEX, which also owns the London Metal Exchange, said the move would “redefine global capital markets for decades to come.”

HKEX made clear its offer would only go ahead if the LSE abandoned its plans to buy financial Refinitiv. The LSE agreed to the purchase of the financial information provider a few weeks ago, in a deal aimed at offering trading across regions and currencies.

HKEX described the two companies as “highly complementary” in a statement released on Wednesday.

The group said the move would help the UK capture growth opportunities from mainland China and the rise of the renminbi currency.

But it made clear the statement was over a “possible offer,” and said it was “not an announcement of a firm intention to make an offer.”

It has begun talks with regulators in Britain and in Hong Kong, and would apply to also have its shares listed in London after the deal.

It is reported that “key” London managers would move over to roles in the Hong Kong firm’s managerial teams.

Li said: “Both businesses have great brands, financial strength and proven growth track records. Together, we will connect East and West, be more diversified and we will be able to offer customers greater innovation, risk management and trading opportunities.

“A combined group will be strongly placed to benefit from the dynamic and evolving macroeconomic landscape, whilst enhancing the long-term resilience and relevance of London and Hong Kong as global financial centers."

The LSE had been looking to increase its activities in Asia. It is one of the oldest stock exchanges in the world, and can trace its history back more than 300 years. Reuters reports that it has not yet commented on the offer.

For more on this story click;

About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.

Connect with Yahoo Finance: