London Stock Exchange Group (LNSTY) shares surged to a fresh record high Wednesday after the London-based securities exchange received a $39 billion takeover from its Asian rival, the Hong Kong Exchanges and Clearing Limited.
However, the Hong Kong exchange said it would only go ahead with the deal if the LSE scraps talks to buy analytics firm Refinitiv from private equity group Blackstone Group (BX - Get Report) for around $27 billion in a move that was meant to shore-up the exchange operator's global reach in fixed income and data markets. The LSE said it would consider the proposal and make a further statement "in due course".
"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," she added.
LSE Group shares were marked 5.67% higher in London following the Hong Kong offer and changing hands at a record high of £72.02 each, a move that values the company at just over £25.1 billion ($31.01 billion).