Published: Thu, October 10, 2019
Markets | By Otis Pena

Hong Kong drops £32bn bid for London Stock Exchange

Hong Kong drops £32bn bid for London Stock Exchange

The Hong Kong Stock Exchange says it's dropping its bid for the London Stock Exchange, on Tuesday morning via the group's website . And there have been successful deals, including HKEX's acquisition of the London Metal Exchange and Intercontinental Exchange Inc.'s purchase of the New York Stock Exchange.

The ongoing turmoil in Hong Kong also didn't help.

LSE shares slid 6.1 per cent by 0805 GMT, close to their lowest since Hong Kong Exchanges and Clearing Ltd (HKEX) announced its approach on September 11, while the Hong Kong bourse's stock was up 2.3 per cent near the end of its trading day. LSE last month rejected HKEX's initial takeover proposal, citing complications ranging from political unrest in Hong Kong to potential problems with regulators.

Hong Kong had hoped to unite itself with the European markets to simplify cross-border transactions and establish continuous trading over 18-hour days.

Specifically, HKEX confirmed that it does not intend to make an offer for LSEG, however, the Board of the company still believes that the merger between LSEG and HKEX is "strategically compelling and would create a world-leading market infrastructure group". That's because London Stock Exchange Group executives were reportedly unmoved by the $36.4 billion unsolicited offer, which would have been game-changing for both operations.

LSE had planned to buy data and analytics company Refinitiv, a deal which is worth 27$ billion.

OnePlus 7T Pro launch event today
The OnePlus 7T Pro is believed to be powered by a Snapdragon 855+ processor with up to 8 GB RAM and 256 GB of internal storage. The device will have a 6.65-inch fluid AMOLED bezel-less display along with a pop-up camera and dual-SIM support.

The LSE was not immediately available to comment on HKEX's announcement on Tuesday.

Li said the HKEX would not ease its global pace after giving up the bid.

"It turns out they have not".

Share mover headlines - courtesy of share market operators themselves on Tuesday (October 8).

Since the HKEX unveiled its takeover offer last month, LSEG stock has held stubbornly below the bid level - which stood at more than £83 per share - as investors remained unconvinced. "It may not be a stock exchange, but other related areas", said Bocom's Hong.

Like this: