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Last Updated : Sep 11, 2019 04:15 PM IST | Source: Moneycontrol.com

Hong Kong Stock Exchange looks to acquire LSE for £32bn

Explaining its rationale behind the proposed transaction, HKEX said it values itself and LSEG as two of the world’s premier market infrastructure businesses

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Representative image
Representative image

Hong Kong Exchanges and Clearing (HKEX) on September 11 said it plans to acquire London Stock Exchange Group (LSEG) in a deal valued at 29.6 billion pounds, which translates to around Rs 2.6 lakh crore, implying an enterprise value of 31.6 billion pounds.

In its statement, HKEX emphasises that “there can be no certainty that the possible offer described in this announcement will result in a formal offer”.

Also, there should be no undue reliance on the “forward looking statements” in the announcement that “reflect the current expectations of HKEX based on the information currently available and involve a number of assumptions, risks and uncertainties in relation to HKEX and LSEG, some of which are outside of HKEX’s control”.

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HKEX, in its proposal to LSEG board, says the proposed combination will bring in “a highly compelling strategic opportunity to create a global market infrastructure leader”.

Explaining its rationale behind the proposed transaction, HKEX says it values itself and LSEG as two of the world’s premier market infrastructure businesses. Together, they have the ability to offer “unique potential to enhance and capture global capital and data flows,” it says.

It claims the combined duo is going to empower both companies and establish a better position for them by providing investors and participants unprecedented global market connectivity.

The proposed transaction, HKEX says, is going to provide a clear path to open up Mainland China’s capital markets, tap Asia’s growing wealth, and “reinforce Hong Kong’s position as the key connection between Mainland China, Asia and the rest of the world.”

The company, in its official statement, also says the combination will secure London’s position as the global centre for Renminbi (RMB) and Eurodollar. It will also “elevate the UK’s role in capturing the significant growth opportunities presented by Mainland China’s continuing internationalisation and the emergence of RMB as a global reserve currency”, it states.

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First Published on Sep 11, 2019 03:40 pm

tags #HKEx #LSE

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