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Old 09-11-2019, 03:30 AM
 
828 posts, read 527,274 times
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This could be a big play for the Chinese washing machine that is Hong Kong.




Hong Kong Exchanges and Clearing Ltd. made an unexpected bid for London Stock Exchange Group Plc, which could potentially throw the European exchange’s own transformative deal into jeopardy.

The transaction values one of Europe’s largest exchanges at 29.6 billion pounds ($36.6 billion), according to a HKEX a statement Wednesday. The Asian bourse operator had considered the ‘ambitious and far-reaching’ deal for many months, HKEX Chief Executive Officer Charles Li said. The LSE, which agreed to snap up data provider Refinitiv in a $27 billion blockbuster agreement just weeks ago, declined to comment.

https://www.bloomberg.com/news/artic...on-bid-for-lse
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Old 09-11-2019, 04:01 AM
 
Location: Great Britain
12,499 posts, read 4,287,883 times
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The regulators will be looking closely at this one, the last planned merger with German Deutsche Boerse fell through back in 2017.

The US Nasdaq and the Chicago Mercantile Exchange (CME) have also both previously shown interest in the London Stock Exchange, however whether there is a counter offer or other interested parties remains to be seen. As for CME it bought London's NEX exchange last year for $5.5 Billion.

Hong Kong bourse proposes £32bn merger with London Stock Exchange - City Am

Exchange operator CME Group to buy Britain's NEX for $5.5 Billion - Reuters (2018)

ThelLSE- Hong Kong merger also seems to depend on whether the LSE goes ahead with it's $27 billion take over of Refinitiv, a move the company said would transform it into a UK-headquartered, global rival to Michael Bloomberg’s financial news and data business.

Hong Kong Stock Exchange makes £32bn move for London counterpart - The Guardian

It's now up to the the LSE shareholders in term of whether to press ahead with the Refinitiv takeover or merge with the Hong Kong bourse.

A joint LSE-Hong Kong Exchange would be the third largest in the world after the NYSE and Nasdaq.

Last edited by Brave New World; 09-11-2019 at 05:10 AM..
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Old 09-11-2019, 06:23 AM
 
Location: Great Britain
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Actually I stand corrected, as according to the London Evening Standard it would create the second biggest exchange in the world after the NYSE and would be bigger than NASDAQ.


Hong Kong Stock Exchange propose shock LSE £30bn takeover bid - London Evening Standard



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Old 09-11-2019, 11:22 AM
 
828 posts, read 527,274 times
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Indeed. It would be the second biggest exchange.

With trading volume down so much I wouldn't be surprised if they made a deal. It would make better sense for HK to wait a few years but my guess is the CCP printing press can't wait that long.
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Old 09-12-2019, 05:38 AM
 
Location: Great Britain
12,499 posts, read 4,287,883 times
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Quote:
Originally Posted by NorCal77 View Post
Indeed. It would be the second biggest exchange.

With trading volume down so much I wouldn't be surprised if they made a deal. It would make better sense for HK to wait a few years but my guess is the CCP printing press can't wait that long.
Three problems have emerged, and the deal now looks dead in the water.

Firstly the offer does not meet the estmated value of the LSE.

Secondly UK and US Authorities and Regulators are not happy with the prospect of Chinese Controlled Homg Kong Stock Exchange owning the LSE. As a lot of US trade passes through the LSE, so both the UK and US views on the matter are important

Third the LSE has indicated it's not interested and would rather proceed with the $27 billion take over of Refinitiv.

It's often difficult to do deals in terms of merging stock exchanges due to national concerns and information security.

Doubts grow over Hong Kong bid for the London Stock Exchange as shares fall - London Evening Standard

The merger that would make the most sense would be between the NASDAQ and LSE, as pointed out in the 2017 article below in relation to Credit Suiises own research on stock exchange mergers.

US Nasdaq and London Stock Exchange: CREDIT SUISSE: A merger between 2 stock exchange behemoths makes a lot of sense - Business Insider (2017)


Last edited by Brave New World; 09-12-2019 at 05:52 AM..
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Old Today, 04:14 AM
 
Location: Great Britain
12,499 posts, read 4,287,883 times
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It's now being reported that the Intercontinental Exchange (ICE) which owns the NYSE may make a counter offer.

With talk of HKEX's grab for the London Stock Exchange turning hostile, will ICE step in as an alternative suitor? - The Telegraph

Intercontinental Exchange - Wikipedia

Hong Kong bid could be last chance to buy London Stock Exchange - Sky News
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Old Today, 04:19 AM
 
4,798 posts, read 3,696,699 times
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HK will fail. China has decided, given those thugs protesting and trashing the city all the while hiding behind their face masks, that this old British colonial outpost has too many chinese traitors with brainwashed nostalgia for the supposed benevolent rule of Britain. HK is slated to become a third tier regional town. Shenzhen and Shanghai are in. Why would china support hk’s anything?
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