Bourse formally drops bid to buy LSEBusiness | 8 Oct 2019 11:35 am
The Hong Kong stock exchange today formally dropped its bid to buy its London counterpart after the European exchange rejected the surprise offer.
Hong Kong Exchanges and Clearing (0388) said it was “unable to engage” with managers of the London Stock Exchange Group. That followed the London exchange’s public rejection of the surprise offer in mid-September, citing “lack of strategic merit.”
The acquisition would have created a US$70 billion company. But the London exchange cited concerns including the Hong Kong exchange’s ties to the government of the Chinese territory. That gives the mainland’s ruling Communist Party influence over its operations.
The London Stock Exchange Group also owns the Milan exchange and the Russell Indexes in the United States.
Shares of HKEX rallied after the announcement this morning. As of 11:30am, the blue-chip stock jumped 3.01 percent, or HK$6.8, to HK$232.8. -AP / The Standard