Hong Kong Stock Exchange Makes $36.6Bln Bid For London Stock Exchange

Fahad Shabbir (@FahadShabbir) Published September 11, 2019 | 06:34 PM

The Hong Kong Exchanges and Clearing Limited (HKEX), which owns Hong Kong's main stock exchange, has made a proposal to take over the London Stock Exchange

MOSCOW (UrduPoint News / Sputnik - 11th September, 2019) The Hong Kong Exchanges and Clearing Limited (HKEX), which owns Hong Kong's main stock exchange, has made a proposal to take over the London Stock Exchange.

"Hong Kong Exchanges and Clearing Limited ("HKEX") today announces that it has made a proposal to the board of London Stock Exchange Group plc ("LSEG") to combine the two companies. The Board of HKEX believes a proposed combination with LSEG (the "Proposed Transaction") represents a highly compelling strategic opportunity to create a global market infrastructure leader," the HKEX said in a statement.

According to the statement, the value of HKEX's acquisition offer is estimated to be valued at 29.6 billion Pounds ($36.6 billion), based on the closing price of both stock exchanges on Tuesday.

The LSEG said in a statement that it would consider the proposal from HKEX.

Following news of the takeover offer, shares of the LSEG jumped over 5 percent in early day trading on Wednesday.

The HKEX's offer to acquire the LSEG came amid rising concerns over Hong Kong's status as a global financial hub, after massive protests had plagued the semi-autonomous city for over three months over a controversial extradition bill. The Hong Kong government's decision to formally withdraw the bill last week failed to ease tensions, as protesters called on local authorities to meet all of their demands.

At the same time, London's status as a global financial center is expected to face uncertainties, while the United Kingdom tries to finalize the deal to leave the European Union.