About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

London Stock Exchange Rejects $37 Billion Acquisition Bid from Hong Kong Exchange

Subscribe to our newsletter

The London Stock Exchange Group (LSEG) has rejected the $37 billion conditional acquisition proposal made by Hong King Exchanges and Clearing (HKEX) to acquire the entire share capital of the London exchange last week saying it has ‘fundamental concerns about the key aspects of the conditional proposal’. These include the strategy, deliverability, form of consideration and value. The LSEG board goes on to state: “Accordingly, the board unanimously rejects the conditional proposal and, given its fundamental flaws, sees no merit in further engagement.”

LSEG also says it remains committed to, and continues to, make good progress on its proposed acquisition of Refinitiv, with regulatory approval processes under way, a circular expected to be posted to LSEG shareholders in November 2019 to seek their approval of the transaction, and the transaction to close in the second half of 2020.

Despite LSEG’s rejection of the proposal, HKEX is expected to persist with its plans having made only an initial conditional proposal. LSEG sets out the details of its rejection in a letter to HKEX. The letter notes its proposed acquisition of Refinitiv and says the HKEX proposal doesn’t meet LSEG’s strategic objectives, presents serious deliverability risk, offers unattractive HKEX share consideration, and falls substantially short on value.

On this last point, LSEG states in the letter: “Irrespective of the considerations above, and even assuming your proposal were deliverable, its value falls substantially short of an appropriate valuation for a takeover of LSEG, especially when compared to the significant value we expect to create through our planned acquisition of Refinitiv.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Enhancing trader efficiency with interoperability – Innovative solutions for automated and streamlined trader desktop and workflows

Traders today are expected to navigate increasingly complex markets using workflows that often lag behind the pace of change. Disconnected systems, manual processes, and fragmented user experiences create hidden inefficiencies that directly impact performance and risk management. Firms that can streamline and modernise the trader desktop are gaining a tangible edge – both in speed...

BLOG

DiffusionData Targets Agentic AI in Finance with New MCP Server

Data technology firm DiffusionData has released an open-source server designed to connect Large Language Models (LLMs) with real-time data streams, aiming to facilitate the development of Agentic AI in financial services. The new Diffusion MCP Server uses the Model Context Protocol (MCP), an open standard for AI models to interact with external tools and data...

EVENT

Data Management Summit London

Now in its 16th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Institutional Digital Assets Handbook 2023

After initial hesitancy, interest in digital assets from institutional market participants has grown over the past three to four years. Early focus inevitably centred on the market opportunities presented by bitcoin and other cryptocurrencies. But this has evolved into a broad acceptance of a potentially meaningful role for digital assets in institutional markets. It’s now...