The Hong Kong Stock Exchange announced a few minutes ago that it intends to buy the London Stock Exchange “London Stock Exchange” (LSE). The offer would amount to 31.6 billion Pounds, partly from shares and a cash portion. Included are 2 billion Pounds of debt. What else was there? Just a few days ago, the London Stock Exchange announced that it wanted to buy the data provider Refinitiv for a whopping 27 billion Dollars. The Hong Kong Stock Exchange is currently saying that this Refinitiv purchase will be cancelled if its takeover bid is approved. The Hong Kong Stock Exchange speaks of a “connection” between the two stock exchanges (always sounds better than a takeover), which is what they are striving for. It is obvious who will be the determinant in the future. The previous owners of the LSE are to receive cash and shares of the Hong Kong stock exchange.
Thus the LSE will disappear under the patronage of the Asians if the LSE shareholders agree. Our comment: Deutsche Börse already wanted to merge with the LSE, but this failed due to antitrust concerns of the EU. But Hong Kong and London, that shouldn’t trigger the same antitrust concerns within the EU? Because then there would still be three major suppliers in Europe, LSE, Frankfurt and Euronext. Well, the UK will soon be leaving the EU. Nevertheless, London remains a capital market place in Europe. The offer was made to the Supervisory Board of LSE. There is still no green light. The London Stock Exchange share is currently trading at +4.5% compared to yesterday’s closing price.