Hong Kong Exchanges and Clearing has launched a £ 31.6bn shock offer for the London Stock Exchange Group in an effort to disrupt the British rival's ties with Refinitive.
Shares in the London Stock Exchange (LSE) grew as much as 16% higher after the Hong Kong stock exchange disclosed cash and shares.
Hong Kong Exchanges and Clearing (HKEX) proposes to pay about £ 8.36 per share – which values LSE at around £ 29.6 billion, or £ 31.6 billion including debt.
But HKEX said the potential offer is dependent on LSE's planned US $ 27 billion (£ 21.9 billion) to buy the scrap computer company Refinitive.
LSE agreed that last month, the Refinitive deal, which would see major Refinitive shareholders, including Blackstone and Thomson Reuters, take 37% of the expanded business.
HKEX said that its merger with LSE would "redefine global capital markets for decades to come".
It said it had "early engagement" with the LSE and plans to seek a recommendation from its board.
But the LSE labeled HKEX's proposal "unsolicited, preliminary and highly conditional."
It allowed the it would consider the approach, although it emphasized it "Remains engaged and continues to make good progress in its proposed acquisition of Refinitive."
HKEX's proposed offer price marks 23% of LSE's closing share price on Tuesday. [1
HKEX CEO Charles Li said: "Bringing HKEX and LSEG together will redefine the global capital markets for decades to come.
"Both companies have fantastic brands, financial strength and proven growth items.
" Together we will connect east and west, be more diversified and we will b be able to offer customers greater innovation, risk management and trading opportunities. "
The LSE approach comes after a £ 21 million merger with German rival Deustche Borse collapsed in 2017, when it was blocked by the European Commission.