Hong Kong Stock Exchange drops $54b bid for London Stock Exchange
HONG KONG : The Hong Kong Stock Exchange yesterday dropped its takeover multi-billion-dollar bid for the prized London Stock Exchange Group (LSEG), which would have created a global markets titan.
Hong Kong Exchanges and Clearing (HKEX) made the shock proposal for LSEG on Sept 11, but LSEG formally rejected the offer the next day citing "fundamental" flaws and concerns over its ties to the city's government.
The huge cash-and-shares bid, worth £32 billion (S$54 billion), was dependent on the axing of LSEG's planned purchase of US financial data provider Refinitiv.
HKEX chairman Laura Cha said then that it represented a "compelling" opportunity and would bring together the largest and most significant financial centres in Asia and Europe.
But the owner of the London and Milan stock exchanges unanimously rejected the bid, saying it fell "substantially short of an appropriate valuation for a takeover".
HKEX said in a statement yesterday it was "disappointed" to pull its bid but that it was in the best interests of shareholders to do so.
"HKEX confirms it does not intend to make an offer for LSEG," it said.
"The board of HKEX is disappointed it has been unable to engage with the management of LSEG in realising this vision."
Shares in HKEX rose more than 2 per cent yesterday.- AFP