
BLOOMBERG/SIMON DAWSON
Hong Kong Exchanges & Clearing (HKEX) said that it will not proceed with its GBP 29.6 billion ($36.4 billion) unsolicited takeover bid for London Stock Exchange Group (LSEG) another failed cross-border deal in the exchange sector that ends the Asian bourse’s ambitions to be a link between Europe and China, reported Bloomberg.
The decision is a rare setback for HKEX Chief Executive Officer Charles Li, who had a vision of London at the centre of trading between East and West—with the help of Hong Kong.
In a filing, HKEX stated that while the bourse’s board continues to see a combination as strategically compelling, it’s 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.
Li’s LSE counterpart, David Schwimmer, has said he preferred direct access to China and did not need the former British colony as a conduit. LSE last month rejected HKEX’s initial takeover proposal, citing complications ranging from political unrest in Hong Kong to potential problems with regulators.
LSE investors are due to vote on the exchange’s own $27 billion deal for data provider Refinitiv before the end of the year. Any further pursuit by HKEX would depend on LSE abandoning that plan.
Exchange companies have tried and failed to combine in recent years, as political, regulatory and economic considerations have foiled the efforts. LSE’s attempted merger with Germany’s Deutsche Boerse was ultimately abandoned, and Singapore Exchange’s bid for ASX was rejected by Australian regulators in 2011 because of national interest concerns.
MOST READ
INVESTMENT
Aldar to invest AED 2 million in Abu Dhabi...INVESTMENT
Oil drops 31 per cent as price war erupts...INVESTMENT
India seizes Yes Bank, limits withdrawalsINVESTMENT
ING Groep plans to sell its Turkish unitINVESTMENT
Bahrain considers stake sell in oil assetsINVESTMENT
SABB seeks to boost corporate lendingINVESTMENT
UBS launches new private client programINVESTMENT
Dubai’s W Motors seeks funds to go electricINVESTMENT
Egypt plans to resume IPOs of parastatalsINVESTMENT
HSBC considering exiting from TurkeyINVESTMENT
Zimbabwe turns to UAE to sell a stake in...INVESTMENT
Dubai's DP World buys 44 per cent stake in...