Hong Kong Exchanges & Clearing Ltd. said it will no longer pursue its planned acquisition of the entire issued and to-be-issued share capital of London Stock Exchange Group PLC after deeming the proposed move to not be in the best interest of its shareholders.
The Hong Kong bourse operator said that while it still believes merging with LSE is strategically compelling, it decided to scrap its pursuit of the proposed merger after it was unable to engage with the management of LSE in realizing the move.
Hong Kong Exchanges' decision followed reports that it had intended to raise its takeover offer for LSE after its initial takeover offer was rejected by the London bourse, citing current political turmoil in Hong Kong and potential intense scrutiny from regulators and government entities.
Hong Kong Exchanges is restricted from making another offer for LSE for six months unless certain circumstances are met.
