Hong Kong Stock Exchange Offers $39 Billion for London Market

The bid by HKEX has crossed LSE’s $27 billion offer to acquire Refinitiv.

Author: Anthony Russo   

Hong Kong Exchanges and Clearing Ltd. (HKEX) has made a $39 billion buyout offer to the board of London Stock Exchange (LSE) on Wednesday.

The bid by HKEX has crossed LSE's $27 billion offer to acquire Refinitiv, which provides financial marketing data in London, and form a global trading powerhouse, according to Reuters. 

HKEX said in a statement today that together with LSE it would create a global exchange that spreads across Asia, Europe and the United States with a market value that exceeds $70 billion.

"Together, they would provide an unprecedented market connectivity platform for global market participants, unleashing a new generation of opportunities on the world's first truly global exchange," HKEX said in a statement today.

LSE said it would review HKEX's offer, but remains committed to striking a deal with Refinitiv, Reuters said. The offer made by HKEX represented a 30 percent premium to LSE's stock price at close on Tuesday, according to Reuters. 

"It looks uncertain whether shareholders will accept the offer, given that the Refinitiv deal is popular across the shareholder base for its potential to transform the business and add value over the long-term," said Guy de Blonay, a fund manager at Jupiter, a top-25 investor in the LSE, according to Reuters.