UK: Gov could block Hong Kong bid for LSE

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. 

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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