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.
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’s trading and clearing technology.
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“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 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.