London Stock Exchange Group faces £30bn Hong Kong merger bid

September 11, 2019

Shares in the owner of the London Stock Exchange have surged after it received a £30bn merger proposal from its Hong Kong rival.

Hong Kong Exchanges and Clearing (HKEX) said it was yet to make a firm offer but its plans would create a "global market infrastructure leader".

The terms of its cash and shares proposal would value the London Stock Exchange Group (LSEG) at £8.36 per share or £29.6bn.

Shares in LSEG, which was yet to comment, were trading 16% up in the moments after the announcement was made but later settled 10% higher - at £6.60 per share.

The company had a market value just shy of £24bn at the start of the day's trading.

HKEX said: "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."

The Hong Kong firm made its push following three attempts by the LSEG to join forces with Deutsche Boerse - with the latter merger plans blocked by the EU in 2017.

LSEG revealed in July it was in talks to buy Refinitiv, the financial data provider, for $27bn (£21.6bn).

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