The London Stock Exchange turned down the whopping $36 billion bid, citing accusations that the Hong Kong exchange is tied to the government. The Asian market has now officially dropped its bid.
Hong Kong Stock Exchange (HKEX) dropped its bid to take over its London rival, the company said in a press release.
On 11 September, HKEX shocked the global financial architecture by proposing a $36.4 billion takeover of the London Stock Exchange, which would expand the platform across multiple regions and currencies, potentially rivalling Bloomberg and others.
The London Stock Exchange Group rejected the offer the next day, however, citing “fundamental flaws” and alleging ties to the Hong Kong government.
In its statement, HKEX said it was “disappointed” to pull its bid, but added that it was in the best interests of shareholders to do so.
HKEX said that the $36.4 billion bid was a “vote of confidence in London and the UK’s future role as a global financial centre,” despite London’s long-lasting Brexit crisis.
“Bringing HKEX and LSEG together will redefine global capital markets for decades to come,” HKEX CEO Charles Li said in the bid statement in September. A combined group will be strongly placed to benefit from the dynamic and evolving macroeconomic landscape, whilst enhancing the long-term resilience and relevance of London and Hong Kong as global financial centres.”