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Hong Kong's stock exchange pulls takeover offer for London Stock Exchange

Hong Kong stock excahnge
Photo: Vernon Yuen/NurPhoto via Getty Images

Hong Kong Exchanges and Clearing pulled a $39 billion takeover offer for the London Stock Exchange, following opposition from LSE's board and an inability to secure large shareholder support.

Why it matters: LSE opposition was officially driven by strategic and pricing concerns, but cannot be divorced from concerns over the future viability of Hong Kong's "one country, two systems" relationship with China.

  • LSE plans to move forward with its $27 billion purchase of financial data company Refinitiv from The Blackstone Group and Thomson Reuters. HK Exchanges had made its offer contingent on LSE dropping the Refinitiv deal.

The bottom line: "Exchange companies have tried and failed to combine in recent years, as political, regulatory and economic considerations have foiled the efforts." — Bloomberg