The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

HKEX Pulls Out of Bid for LSE

Share article

Hong Kong Exchanges & Clearing (HKEX) has dropped its $37 billion bid for the London Stock Exchange Group (LSEG) because it has been unable to engage with LSEG management to realise the deal. While the frustration of HKEX is palpable in its withdrawal statement, there will no doubt be sighs of relief at LSEG as it continues its acquisition of Refinitiv.

In a statement this morning, HKEX said: “The board of HKEX continues to believe that a combination of LSEG and HKEX is strategically compelling and would create a world-leading market infrastructure group. Despite engagement with a broad set of regulators and extensive shareholder engagement, the board of HKEX is disappointed that it has been unable to engage with the management of LSEG in realising this vision, and as a consequence has decided it is not in the best interests of HKEX shareholders to pursue this proposal.”

HKEX made an unexpected bid for LSEG in early September, stipulating that the exchange must revoke its plan to acquire Refinitiv for the deal to go ahead. HKEX envisaged that bringing HKEX and LSEG together would ‘redefine global capital markets for decades to come.’

LSEG was less enthusiastic, unanimously rejecting the bid and saying it saw no merit in further engagement. In a letter to the HKEX, it said the bid ‘fell 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’.

HKEX had until today to follow up on its initial proposal with a firm bid. Under UK regulation, HKEX it is not allowed to make another approach to the LSE for six months.

Leave a comment

Your email address will not be published. Required fields are marked *

*

Related content

WEBINAR

Recorded Webinar: Best Practices for Integrated Regulatory Reporting Across Multiple Jurisdictions

The regulatory reporting obligations of financial institutions have mushroomed in scale over the past decade, leaving firms facing a raft of different requirements to provide increasingly granular metrics on their transaction, valuation and collateral data to a number of regulatory authorities. While many of these reports draw from the same core data set, the nuanced differences...

BLOG

Insight: How to Adapt your Data Strategy to Changing Times

As the debut Data Management Summit Europe Virtual from the A-Team Group fast approaches (book your place here), and as the ongoing complexities of operating in a post-COVID 19 world start to become clear, it is imperative that firms evaluate their current approach to data management in order to identify the emerging gaps in their current provision, and...

EVENT

RegTech Summit Virtual

We’re thrilled to introduce you to our new RegTech Summit Virtual event. Yes that’s right, all the fantastic content shared by A-Team’s unique community of practitioner experts that you’ve come to know and love from our RegTech Summit live events in London is now going to be made available to you online, so you can watch or listen at your leisure – whether that’s in your office, on your commute, or from the comfort of your own home.

GUIDE

Best Practice Client Onboarding

Client onboarding is central to the success of banks, yet it continues to present challenges and the benefits of getting it right are difficult to achieve. The challenges arise from siloed systems, manual processes and poor entity data quality. The potential benefits of successful implementation include excellent client experience, improved client acquisition and loyalty, new business opportunities, reductions in costs, competitive advantage, and confidence in compliance.