Owner of the London Metal Exchange, Hong Kong Exchanges and Clearing Limited, a stock and futures market operator in Hong Kong, founded back in the 2000s, had made an unprecedented $39 billion takeover bid for London Stock Exchange, terms of which had involved London Stock Exchange to postpone its $27 billion acquisition bid for Reuters owned data company Refinitiv.
If truth is to be told, latest move of Hong Kong Exchanges to acquire London Stock Exchange at a $39 billion buyout deal came forth at such a critical time, when United Kingdom was preparing for a likely no-deal Brexit, while Hong Kong city was being rampaged every day by the protestors.
Nonetheless, if the merger attempt comes into effect, both London and Hong Kong would be able to form a multinational trading superpower better capable of competing with larger US rivals likes of ICE alongside CME. In point of fact, London Stock Exchange had long been yearning to shore up its presence in Asia, while it recently had initiated a scheme with Shanghai stock exchange to compete with Hang Seng, nonetheless, addressing to potential prospects of a merger of HKEX with London Stock Exchange, Hong Kong Exchanges said in a statement later on Wednesday (September 11th), “The board of HKEX believes a proposed combination with LSEG represents a highly compelling strategic opportunity to create a global market infrastructure leader. ”