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 24/7 to Event-Driven: Engineering the Next-Generation Exchange Platform

What digital asset and prediction markets are teaching traditional exchanges about availability, agility and time-to-market. New market structures and regulatory changes are forcing exchange operators to rethink the foundations of their technology stacks. Digital asset exchanges, prediction markets and retail-driven platforms have normalised 24/7 trading, continuous availability and rapid product iteration. In contrast, many traditional...

BLOG

HPR Launches Maxbot Hardware Gateway as Market Access and Risk Controls Hit Software Limits

HPR, the high-performance infrastructure provider, has launched Maxbot, a fully hardware-based market access gateway and pre-trade risk solution, reflecting what the firm describes as a structural shift in how latency-sensitive trading infrastructure is being built and governed. Maxbot combines market access and pre-trade risk enforcement into a single hardware appliance, delivering a complete wire-to-wire hardware...

EVENT

Eagle Alpha Alternative Data Conference, London, hosted by A-Team Group

Now in its 8th year, the Eagle Alpha Alternative Data Conference managed by A-Team Group, is the premier content forum and networking event for investment firms and hedge funds.

GUIDE

Impact of Derivatives on Reference Data Management

They may be complex and burdened with a bad reputation at the moment, but derivatives are here to stay. Although Bank for International Settlements figures indicate that derivatives trading is down for the first time in 10 years, the asset class has been strongly defended by the banking and brokerage community over the last few...