The Stock Exchange of Hong Kong (HKEX) announced on Tuesday that it would not proceed with an offer to merge with the London Stock Exchange Group (LSEG)
BEIJING (Pakistan Point News / Sputnik - 08th October, 2019) The Stock Exchange of Hong Kong (HKEX) announced on Tuesday that it would not proceed with an offer to merge with the London Stock Exchange Group (LSEG).
On September 11, HKEX made a proposal to take over LSEG. The value of the acquisition offer was estimated at $36.5 billion. Two days later, the offer was rejected by LSEG, citing different strategic objectives, potential difficulties with regulators and low value of the proposal.
"Today, disappointingly, we announced our decision not to proceed with a firm offer for the London Stock Exchange Group. We still believe the strategic rationale for the combination of our two businesses is compelling and would create a world-leading market infrastructure group. However, despite a huge amount of work and discussions with a broad set of regulators and extensive shareholder discussions, the level of engagement from LSEG led us to conclude that the continued pursuit of a combination of the two businesses would not be in the best interests of our own shareholders," HKEX Chief Executive Charles Li said in a statement.
LSEG, the operator of the London and Milan exchanges. is the leading diversified exchange group in Europe. HKEX group is one of the world's leading financial market operators. The company provides services for trading and clearing securities and derivatives. The company staff amounts to 2,100 employees. HKEX also owns the London Metal Exchange (LME).
