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: High-Performance Networks & Low-Latency Connectivity for Trading

With financial markets becoming more complex and interconnected in today’s electronic trading environment, trading firms, exchanges, and infrastructure providers need to continually push the boundaries of network performance to stay ahead. Ultra-low latency, seamless connectivity, and resilient infrastructure are no longer just advantages – to stay competitive, they’re necessities. This webinar, part of the A-Team...

BLOG

Integrating AI into Legacy Infrastructure – Balancing Innovation and Reality

Integrating cutting-edge AI into the financial sector’s entrenched legacy systems is one of today’s most pressing challenges. How can firms balance the promise of innovation with the hard reality of their existing infrastructure? At the A-Team Group’s recent AI in Capital Markets Summit London, a panel of experts tackled this very issue. Moderated by Naomi...

EVENT

Eagle Alpha Alternative Data Conference, Spring, New York, 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

Institutional Digital Assets Handbook 2024

Despite the setback of the FTX collapse, institutional interest in digital assets has grown markedly in the past 12 months, with firms of all sizes now acknowledging participation in some form. While as recently as a year ago, institutional trading firms were taking a cautious stance toward their use, the acceptance of tokenisation, stablecoins, and...