Hong Kong Stock Exchange on Wednesday said it is proposing to buy the London Stock Exchange, in a deal worth $36.6 billion.
The Hong Kong exchange has until October 9 to make a firm offer, or pull its proposal if it does not intend to make it, the statement says.
Together, the two stock exchanges would be worth more than $70 billion, it said. The LSE said its board will consider the proposal.
LSE recently agreed to pay $27 billion for data company Refinitiv, which the LSE said today it is committed to. The HKEX said that its offer will be dependent on the LSE dropping the Refinitiv purchase.
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Hong Kong Stock Exchange says it’s proposing a deal to buy the London Stock Exchange for about $36 billion.
The exchange, or HKEX, announced the plan on its website Wednesday morning, the result of what it said was “early engagement” with the London Stock Exchange. The tie-up would create an exchange giant with a combined value of more than $70 billion, it said.
“Following early engagement with LSEG, we look forward to working in detail with the LSEG Board to demonstrate that this transaction is in the best interests of all stakeholders, investors and both businesses,” HKEX Chief Executive Charles Li said in the statement.
“We are early in the process so I can’t go into too much detail at this stage, but after many months of consideration we believe we have put forward a proposal that is ambitious, far-reaching, and could have a transformative effect on global financial markets.”
“The Board of LSEG will consider this Proposal and will make a further announcement in due course,” LSE said in an emailed statement.
LSEG recently announced that it agreed to buy data company Refinitiv in a deal worth $27 …read more
Source:: Business Insider