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UK: Gov could block Hong Kong bid for LSE

By  |  September 12, 2019

UK regulators could refuse to approve a potential US$36.6 billion takeover of London Stock Exchange by its Hong Kong rival because it forms too critical a part of the country’s financial infrastructure, reported the Wall Street Journal. 

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    According to the Journal, officials at the Bank of England believe that the London Stock Exchange’s clearing arm, LCH, constitutes crucial market plumbing. This would make any tie-up unlikely to successfully pass government scrutiny on concerns about financial stability and security, they said.

    “The London Stock Exchange is a critically important part of the U.K. financial system, so as you would expect, the government and the regulators will be looking at the details closely,” a spokesperson for the UK Treasury stated. “We cannot comment further on commercial matters.”

    On Wednesday, September 11, Hong Kong Exchanges & Clearing made an unsolicited offer in an attempt to thwart London Stock Exchange’s US$14.5 billion takeover of financial-information provider Refinitiv Holdings.

    Full Content: Wall Street Journal

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