Hong Kong Exchanges and Clearing has launched a £ 31.6bn shock offer to the London Stock Exchange Group to disrupt the UK rival's bond with Refinitiv.
London Stock Exchange (LSE) shares jumped 16% more after the Hong Kong Stock Exchange revealed the cash and shares approach.
Hong Kong Exchanges and Clearing (HKEX) proposes to pay around £ 83.61 per share – equivalent to an LSE of around £ 29.6 billion, or £ 31.6 billion including debt.
However, HKEX said the potential offer depended on the $ 27 billion (£ 21.9 billion) deal planned for the LSE, which will scrapp the data provider Refinitive.
LSE approves refining deal last month This month, major shareholders of Refinitiv, including Blackstone and Thomson Reuters, will acquire a 37% stake in the expanded company.
HKEX said the merger with LSE will "redefine global capital markets for decades to come".
It said that it had early engagement "with the LSE and plans to obtain a recommendation from its board.
But the LSE called the proposal by HKEX" unprompted, provisional, and highly conditional. "[1
The offer price proposed by HKEX represents a 23% premium on the closing price of the LSE on Tuesday.
The LSE Agreement Will Be Enhanced Both Companies Have Greater Geographical Reach and Offer "Unprecedented Global Market Connectivity" to Market Participants and Investors.
Charles Li, CEO of HKEX, said: " The merger of HKEX and LSEG will redefine global capital markets for the coming decades.
"Both companies have practice Excellent brands, financial strength, and proven growth.
"Together we will connect East and West, be more diversified, and be able to offer customers greater innovation, risk management and trading opportunities. "
The LSE approach is based on a $ 21 billion merger with German rival Deustche Borse, which collapsed in 2017 when it was blocked by the European Commission.