HKEX offers US$36.6 billion for London Stock Exchange

Proposed combination with LSEG represents opportunity to create a global market leader

HONG Kong Exchanges and Clearing Limited (HKEX) announced it had made a proposal to the Board of London Stock Exchange Group plc (LSEG) to combine the two companies.

The proposal values one of Europe’s largest exchanges at 29.6 billion pounds sterling (US$36.6 billion), according to HKEX’s statement.

The Board of HKEX believes a proposed combination with LSEG represents a highly compelling strategic opportunity to create a global market infrastructure leader.

LSEG and HKEX are two of the world’s premier market infrastructure businesses, which together would offer unique potential to enhance and capture global capital and data flows.

The proposed combination would strengthen both businesses, better position them to innovate across markets and geographies, and offer market participants and investors unprecedented global market connectivity.

It is expected that key LSEG management would continue to operate LSEG businesses and to participate in HKEX Group management following the proposed transaction; and, working with the relevant authorities, it is expected that key LSEG businesses would continue to be regulated by their existing primary regulators.

HKEX intends to apply for a secondary listing of HKEX shares on the London Stock Exchange with effect from completion of the proposed transaction, reflecting HKEX’s commitment to the UK.

The proposed transaction would be financed through a combination of existing HKEX cash resources and new credit facilities.

The Board of HKEX believes that the two businesses are highly complementary and as such, looks forward to working with the relevant authorities to deliver a clear path to completion.

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