HKEX Will Not Go Ahead With LSE Bid

Hong Kong Exchanges and Clearing says it won't go ahead with its bid to buy the London Stock Exchange, ahead of a deadline on Wednesday to go hostile and make an improved offer.

In a statement, HKEX said it hadn't been able to engage with the management of the London Stock Exchange Group over its nearly US$40 billion bid and so decided it wasn't in the best interests of HKEX shareholders to pursue this proposal. The offer values LSE at just over 83 pounds per share.

Under UK takeover rules, it's not permitted to make another offer for six months unless the London Stock Exchange changes its mind.

Parent company, LSEG, meanwhile is pursuing its own US$27 billion deal to acquire US financial data provider Refinitiv, which HKEX wants it to drop.

Some LSE shareholders had reportedly wanted a higher HKEX bid in the area of 90 pounds a share, while there were also concerns over monopoly fears and getting approval from regulators.

HKEX said its board continued to believe that a combination of HKEX and LSE was strategically compelling and that it would create a world-leading market infrastructure group.