The London Stock Exchange Group (LSE) has rejected the £32 billion proposal from the Hong Kong stock exchange, saying that its board had “fundamental concerns” about the offer’s strategy, deliverability, structure and value, according to the Financial Times.
Hong Kong Exchanges and Clearing (HKEX) made an unexpected offer to LSE on Tuesday, which was already in the process of securing the $27 billion (USD) acquisition of data and trading group Refinitiv.
In a statement the LSE said: “The board has fundamental concerns about the key aspects of the conditional proposal: strategy, deliverability, form of consideration and value. Accordingly, the board unanimously rejects the conditional proposal and, given its fundamental flaws, sees no merit in further engagement.”
LSE has sent a letter to HKEX setting out the reasons for its rejection.
The LSE added that it remained committed to its proposed acquisition of Refinitiv, with regulatory approval processes under way.