Hong Kong Exchanges proposes London Stock Exchange deal

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London Stock Exchange confirmed on Wednesday that Hong Kong Exchanges and Clearing has made an "unsolicited, preliminary and highly conditional" £29.6bn offer for the company, which it will consider.

After the announcement, LSE shares jumped 16 percent to an all-time high, but later fell back.

The deal would "redefine global capital markets for decades to come", said Charles Li, chief executive of the Hong Kong company.

"The London Stock Exchange has historically fought off approaches from overseas, preferring instead to be the acquirer", Hunter said, adding that the merger would also raise "political questions" both in terms of historical considerations and the ongoing trade dispute between China and the United States.

Bloomberg LP, the parent of Bloomberg Intelligence, competes with Refinitiv and Thomson Reuters to provide financial news, data and information.

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


HKEX said it has already begun discussions with certain regulators in Britain and Hong Kong.

UK Business Secretary Andrea Leadsom, speaking on Bloomberg Television as news of the deal broke, said the British government would scrutinize any tie-up between the exchanges.

Richard Hunter, head of markets at Interactive Investor, commented: 'The proposed offer would be totemic in terms of East-West relations and the complementary strengths of the two exchanges would make strategic sense. The company went public later that year. The LSE has long sought to bolster its footprint in Asia and recently launched a link with Shanghai.

Hong Kong lawmaker and HKEX shareholder Christopher Cheung said he was concerned most about the offer price, and what LSE could offer to HKEX.

The exchange said it would apply for a secondary listing of its shares on the LSE to demonstrate its "commitment to".

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