Hong Kong exchange makes £30bn offer for London Stock Exchange

London Stock Exchange gets £32bn Hong Kong bid

Hong Kong Exchanges and Clearing proposes merger with LSE

One condition of Hong Kong Exchanges & Clearing £29.6 billion ($36.6 billion) bid for the London Stock Exchange is the rejection of the LSE's deal to acquire Refinitiv either be rejected by LSE shareholders or terminated.

The offer faces several hurdles, as LSE's board "remains committed to" the acquisition of Refinitiv as it considers what it called an unsolicited, preliminary and highly conditional proposal.

HKEX said in a statement on September 11 that it has made an offer worth 8,361 pence a share to combine the two companies. LSE shares jumped nearly 9% to 7,400 pence on Wednesday morning.

CEO Charles Li is trying to make the Hong Kong Exchange a "department store" for investors looking to increase their exposure to China, betting Beijing will increasingly open its capital markets to the rest of the world. The London Stock Exchange has historically fought off approaches from overseas, preferring instead to be the acquirer.

Bloomberg LP, the parent of Bloomberg Intelligence, competes with Refinitiv and Thomson Reuters to provide financial news, data and information.

The Hong Kong exchange group already has a strong base in London, following the acquisition of the London Metal Exchange in 2012.

LSE's efforts to merge with Deutsche Boerse were ultimately scuppered by political considerations.

The Hong Kong government threw its support behind the takeover bid. Leadsom said the United Kingdom authorities would "look very carefully at anything that had security implications for the U.K".

The Hong Kong exchange is required to make a binding offer by October 9. The LSE has long sought to bolster its presence in Asia and recently launched a link scheme with HKEX competitor Shanghai.

The exchange said it would apply for a secondary listing of its shares on the LSE to demonstrate its "commitment to".

It is expected that key LSE management would continue to operate LSE businesses, HKEX said.

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