HKEx Makes £32 Billion Bid For London Bourse

The Hong Kong Stock Exchange has bid nearly £32 billion including debt for its London rival, it announced on Wednesday.

"Hong Kong Exchanges and Clearing Limited today announces that it has made a proposal to the board of London Stock Exchange Group Plc to combine the two companies," it said in a statement, adding the bid is worth £31.6 billion including £2.0 billion of debt.

"A combined group will be strongly placed to benefit from the dynamic and evolving macroeconomic landscape, whilst enhancing the long-term resilience and relevance of London and Hong Kong as global financial centres," said Charles Li, the chief of the HKEx.

"We firmly believe the partnership will strengthen ties between the UK and China, particularly in economic and trade terms. This is a net benefit for Hong Kong, Mainland China, and the United Kingdom," Li wrote on his blog.

He said Hong Kong’s status as an international financial centre "would be taken to another level", reinforcing the city’s importance to the mainland and act as a link between East and West.

The proposal comes just weeks after the London bourse announced a plan to merge with data company Refinitiv. The proposed transaction would only go ahead if the Refinitiv deal does not proceed.

The Hong Kong market operator already has a base in London as the owner of the London Metal Exchange. The London Stock Exchange has long sought to bolster its footprint in Asia and recently launched a trading link with Shanghai. (RTHK, AFP)