One condition of Hong Kong Exchanges & Clearing £29.6 billion ($36.6 billion) bid for the London Stock Exchange is the rejection of the LSE's deal to acquire Refinitiv either be rejected by LSE shareholders or terminated.
The LSE confirmed it had received an "unsolicited, preliminary and highly conditional" offer from its Hong Kong rival and said it would make an announcement in "due course".
Explaining its rationale behind the proposed transaction, HKEX said it values itself and LSEG as two of the world's premier market infrastructure businesses.
The Hong Kong Stock Exchange has made a blockbuster bid for the London Stock Exchange Group equivalent to 1.2 trillion baht. Articles appear on euronews.com for a limited time. "As a financial centre, trust and confidence are important", HKEX CEO Charles Li said of the protests last month, when HKEX reported a 21% fall in trading fees in the first half of the year.
"HKEX bought LME a few years ago so have a presence in the United Kingdom already, but clearly they are trying to diversify away from their Chinese exposure, which is why they are bidding now and not nine months ago." he said.More news: Robbie Keane's Euro qualifiers goals record broken by Cristiano Ronaldo
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Under the proposed offer, HKEX would offer 2,045 pence as well as 2.495 newly issued HKEX shares for each LSE share.
"The fact that the LSE share price has already retreated from the initial 10% spike on release of the news may reflect some initial scepticism around the likelihood of the deal going through".
Meanwhile, analysts over at Bank of America Merrill Lynch were also sceptical, saying the offer price was below their price objective for the LSE and that given the "regulatory complexity" they preferred the Refinitiv merger.
HKEX said it meant to apply for a secondary listing of its shares on the LSE once the deal has gone through.