Hong Kong Exchanges and Clearing Limited (HKEX) has announced that it will not make an offer for the London Stock Exchange Group plc (LSEG), despite proposing a deal to combine the companies last month worth £31.6 billion.
“The board of HKEX continues to believe that a combination of LSEG and HKEX is strategically compelling and would create a world-leading market infrastructure group. Despite engagement with a broad set of regulators and extensive shareholder engagement, the board of HKEX is disappointed that it has been unable to engage with the management of LSEG in realising this vision, and as a consequence has decided it is not in the best interests of HKEX shareholders to pursue this proposal,” says HKEX in a statement issued today.
However, the exchange group says that, under the existing code regarding takeover and mergers, it “reserves the right to announce an offer or possible offer or make or participate in an offer or possible offer for LSEG” within six months of today’s announcement.
It seems unlikely that any future bid from HKEX would be successful though, given that the LSEG board has made it clear that it remains intent on completing the $27 billion deal to buy Refinitiv announced in August.