Hong Kong Exchange proposes merger with London Stock Exchange

Hong Kong Exchange proposes merger with London Stock Exchange

Hong Kong Exchanges and Clearing (OTCPK:HKXCY) has made a £32B unsolicited bid to buy the London Stock Exchange (OTCPK:LDNXF), looking to break up the United Kingdom group's agreed deal for Refinitiv (BX, TRI).

The LSE confirmed it had received an "unsolicited, preliminary and highly conditional" offer from its Hong Kong rival and said it would make an announcement in "due course".

The offer comes weeks after the London exchange announced a plan to merge with data company Refinitiv in a $27 billion deal.

The transaction values one of Europe's largest exchanges at 29.6 billion pounds ($36.6 billion), according to a HKEX a statement Wednesday.

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 global market connectivity'.

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

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"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".

The HKSE deal is subject to approval by both sets of shareholders, as well as the termination of the Refinitiv deal. "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.

LSE shares soared more than 15% in London on the news.

In 2017, European Union regulators blocked a proposed £21bn merger between the LSE and Germany's Deutsche Boerse.

That enormous deal - the third failed attempt at a tie-up between the British and German stock exchange operators - was blocked by the European Commission on fears it would undercut competition.

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