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: From Data to Alpha: AI Strategies for Taming Unstructured Data

Unstructured data and text now accounts for the majority of information flowing through financial markets organisations, spanning research content, corporate disclosures, communications, alternative data, and internal documents. While AI has created new opportunities to extract signals, many firms are discovering that value is constrained not by models, but by the quality of the content, architecture,...

BLOG

Market Data Distribution Parity: Redefining Fairness

By Scott Schweitzer, Independent Consultant, LDA Technologies. Electronic exchanges play a vital role in the financial industry, providing a robust and trusted forum for trading and execution without issue. But even so, the technology available to exchanges has traditionally led to discrepancies in data distribution, from microseconds to nanoseconds, which can be critical for latency-sensitive...

EVENT

RegTech Summit New York

Now in its 9th year, the RegTech Summit in New York will bring together the RegTech ecosystem to explore how the North American capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

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...