The proposed merger, which HKEX said would allow the London Stock Exchange (LSE) to monetize market data in China and help London connect to China’s fast-growing domestic capital market, has been dropped.
Hong Kong Exchanges and Clearing (HKEX) will not make a new offer for the London Stock Exchange (LSE) as it has been unsuccessful in engaging the management of LSE to realize its vision of creating a «world-class infrastructure group,» the bourse said on Tuesday in a statement.
«Despite engagement with a broad set of regulators and extensive shareholder engagement, the Board of HKEX is disappointed that it has been unable to engage with the management of LSEG in realizing this vision, and as a consequence has decided it is not in the best interests of HKEX shareholders to pursue this proposal,» the statement said.
Surprise Offer, Quick Rejection
On September 11, HKEX made the surprise announcement that it had made a $37 billion bid for the London bourse in a proposed merger described as «a highly compelling strategic opportunity to create a global market infrastructure leader.»
The bid was swiftly rejected, but HKEX remained persistent in pursuing the deal, engaging with individual shareholders. It also engaged multiple banks in discussions to obtain a syndicated loan between £7 billion to £8 billion pounds ($8.6 billion to $9.8 billion), a 27 percent increase from its previous bid.
