London Daily

Focus on the big picture.
Thursday, Oct 23, 2025

London Stock Exchange rejects Hong Kong's $37 billion takeover bid

London Stock Exchange rejects Hong Kong's $37 billion takeover bid

The London Stock Exchange has roundly rejected Hong Kong's $37 billion takeover bid, saying it was too low, politically risky and lacked strategic merit.
In a strongly worded statement Friday, LSE's board said it "unanimously" rejects this week's conditional proposal from Hong Kong Exchanges and Clearing.

LSE added that it sees "no merit in further engagement" because of the offer's "fundamental flaws." The London exchange said it remained committed to its acquisition of financial data provider Refinitiv.

Analysts had widely expected the HKEX bid to fail, given worries about Chinese influence over vital financial infrastructure and concerns about reduced competition.

HKEX responded in a statement that said it "continues to believe that the proposed combination ... represents a highly compelling strategic opportunity."
The Hong Kong company suggested that it could now make a hostile bid that would allow investors in LSE to choose between an improved offer and the planned purchase of Refinitiv.

"HKEX believes that shareholders in LSE should have the opportunity to analyze in detail both transactions and will continue to engage with them," the statement said.

Analysts at Citi said in a research note that they expect a second offer from HKEX that includes more cash and improved terms. But they warned that regulatory hurdles still threaten any deal.

Exchange concerns
LSE chairman Don Robert said the exchange was "surprised and disappointed" that HKEX (HKXCF) published its "unsolicited proposal within two days of our receiving it."

The unexpected bid was published Wednesday, suggesting that LSE received the offer on Monday.

The transaction posed serious risks and lacked value for shareholders, Robert said in a letter addressed to the chairperson and CEO of HKEX.
HKEX's relationship with the Hong Kong government would "complicate matters," making it "highly uncertain" that necessary approvals would be obtained, Robert said.

The Hong Kong government directly appoints half of the HKEX board, according to its website. And the chairman's appointment must be approved by Hong Kong's chief executive, Carrie Lam.

Robert also raised concerns about continued social unrest in Hong Kong, saying the "ongoing situation" in the territory adds to uncertainty.
For shareholders, the proposition was unattractive given that they would be paid mostly in HKEX shares, Robert said.

"We see the value of your share consideration as inherently uncertain," said Robert. "Furthermore, we question the sustainability of HKEX's position as a strategic gateway in the longer term."

The proposal would be a "backward step" for LSE strategically, given the high geographic concentration of HKEX's portfolio.

"We do not believe HKEX provides us with the best long-term positioning in Asia or the best listing/trading platform for China," he said, noting that LSE values its current partnership with the Shanghai Stock Exchange.

Even if the proposal were deliverable, it fell "substantially short" of an appropriate valuation for a takeover of LSE, "especially when compared to the significant value we expect to create through our planned acquisition of Refinitiv," Robert said.

HKEX's offer was conditional on LSE terminating its proposed acquisition of Refinitiv, announced only last month. That £22 billion ($27 billion) deal is aimed at transforming the LSE into a global markets and information juggernaut to rival Michael Bloomberg's financial data empire.

LSE's forceful rejection was aimed at discouraging HKEX from pursuing the deal any further, rather than dissuading a third party from getting involved.
Newsletter

Related Articles

0:00
0:00
Close
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
×