Hong Kong Exchanges and Clearing (HKEX) has launched a surprise £29.6 billion bid for the London Stock Exchange, concocting a deal that would scupper the LSE's proposed takeover of market data and analytics group Refinitiv.
But it wants the LSE scrap its planned purchase of a data firm Refinitiv.
"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".More news: Cristiano Ronaldo Breaks Another European Record
Explaining its rationale behind the proposed transaction, HKEX said it values itself and LSEG as two of the world's premier market infrastructure businesses.
"A combined group will be strongly placed to benefit from the dynamic and evolving macroeconomic landscape, whilst enhancing the long-term resilience and relevance of London and Hong Kong as global financial centers", Li said.
The Hong Kong approach is the latest global attempt to acquire the LSE - Germany's Deutsche Boerse has failed three times in recent years, hitting opposition from politicians and regulators.More news: China Exports Contract as Tariff War Hurts Sales to US
LSE CEO David Schwimmer has said that big bang takeovers in exchanges are hard due to political concerns and in recent years the LSE has sought to diversify away from basic trading and clearing to data and analytics.
"Hong Kong Exchanges and Clearing Limited (HKEX) today announces that it has made a proposal to the board of LSEG to combine the two companies", it said in a statement. HKEX's proposed move could fall at the same hurdle, said Ronald Wan, chief executive at Partners Capital International Ltd in Hong Kong.
In terms of future governance, HKEX says it has begun conversations with certain regulators in the United Kingdom and Hong Kong and looks forward to discussing the transaction in detail with LSEG and all relevant regulatory bodies.More news: Strong typhoon winds lash Tokyo area, causing transport chaos
The Hong Kong government threw its support behind the takeover bid.