Breaking: HKEX Makes £32 Billion Offer for LSEG
- HKEX CEO Charles Li said the deal "will redefine global capital markets for decades to come"
Hong Kong Exchanges and Clearing said on Tuesday that it is planning to acquire the London Stock Exchange Group.
The Hong Kong exchange group has made an unsolicited offer of £32 billion ($39.6 million) for the company.
LSEG shares jumped by 15 percent - to just over £78 - after the news was made public, before falling back down to £72.
In a lengthy statement, HKEX said that they are in talks with regulators and LSEG officials as to how the company would be structured if they do complete the acquisition.
The Hong Kong group added that it expects existing LSEG management to stay in place if the two companies reach an agreement.
Mutually beneficial
HKEX also noted that the acquisition would benefit both sides of the deal, with LSEG customers gaining better access to the Chinese market and the Hong Kong firm saying it wants to use the British Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term's trading and clearing technology.
“Bringing HKEX and LSEG together will redefine global capital markets for decades to come," said HKEX CEO Charles Li. "Both businesses have great brands, financial strength and proven growth track records."
"Together, we will connect East and West, be more diversified and we will be able to offer customers greater innovation, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and trading opportunities."
"A combined group will be strongly placed to benefit from the dynamic and evolving macroeconomic landscape, whilst enhancing the longterm resilience and relevance of London and Hong Kong as global financial centres."
If HKEX does acquire the LSEG, it will not be the first time that it has made a major acquisition in the UK.
In 2012, the group bought the London Metal Exchange for £1.4 billion.
Hong Kong Exchanges and Clearing said on Tuesday that it is planning to acquire the London Stock Exchange Group.
The Hong Kong exchange group has made an unsolicited offer of £32 billion ($39.6 million) for the company.
LSEG shares jumped by 15 percent - to just over £78 - after the news was made public, before falling back down to £72.
In a lengthy statement, HKEX said that they are in talks with regulators and LSEG officials as to how the company would be structured if they do complete the acquisition.
The Hong Kong group added that it expects existing LSEG management to stay in place if the two companies reach an agreement.
Mutually beneficial
HKEX also noted that the acquisition would benefit both sides of the deal, with LSEG customers gaining better access to the Chinese market and the Hong Kong firm saying it wants to use the British Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term's trading and clearing technology.
“Bringing HKEX and LSEG together will redefine global capital markets for decades to come," said HKEX CEO Charles Li. "Both businesses have great brands, financial strength and proven growth track records."
"Together, we will connect East and West, be more diversified and we will be able to offer customers greater innovation, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and trading opportunities."
"A combined group will be strongly placed to benefit from the dynamic and evolving macroeconomic landscape, whilst enhancing the longterm resilience and relevance of London and Hong Kong as global financial centres."
If HKEX does acquire the LSEG, it will not be the first time that it has made a major acquisition in the UK.
In 2012, the group bought the London Metal Exchange for £1.4 billion.