Hong Kong to continue the LSE charming

The Hong Kong Exchanges and Clearing (HKEX) is continuing with its LSE charming in spite of the LSE rejects. The London Stock Exchange Board has rejected the 32 billion pounds offer from the Hong Kong Stock Exchange. According to LSE, it is committed to its own deal, the 27 billion pounds acquisition of data and trading group Refinitiv and with its co-operation with Shanghai Stock Exchange.

HKEX has met several financial authorises in the markets to discuss about the offer and in order to overcome the mentioned political and governance risks related to the HKEX offer.

According to Financial Times, the HKEX has time until the 9th of October if they will continue with the offer.

 

Business Finance

LSE and Refinitiv – all share transaction

The London Stock Exchange (LSE) has today announced that it has agreed to acquire the Refinitiv business in all share transaction. The deal, the economic value of 27 billion dollars, will form a new global data and analytics company with combined annual revenue of 6 billion pounds.

The Refinitiv shareholders will get 37 % of the economic interest in LSEG and less than 30 % of the total coming rights of LSEG. The company will has its headquarter in London and will remain in compliance with the UK Corporate Governance Code.

The Stock Exchange says that the annual growth rate for the first three years would be 5-7 % annually and would mean also synergies in the cost savings.

The shareholder meeting of the transactions is expected to before the year end and the completion of the deal is expected to occur during the second half of 2020.

The shares of London Stock Exchange rose 6 % to 7024 pounds in today’s trading.

Business Finance Tech

LSE confirms the Refinitiv talks

The London Stock Exchange (LSE) confirms the merger talks with Refinitiv. According to the company press release on Saturday, the LSE says that it is in talks with Refinitiv Shareholders about the possible acquisition of Refinitiv.

There can be no certainty that discussions between the parties will progress or that a transaction will be forthcoming, the LSE says.

The Stock Exchange says that the total enterprise value of the deal would be about 27 billion dollars and it would mean that new LSE shares would be issued. The parties estimate that the transaction would mean that Refinitiv Shareholders would get less of 30 % of the total voting rights of LSEG.

– LSEG believes that a potential transaction would offer significant customer benefits across the full range of LSEG’s businesses. The combined business would create a leading, UK headquartered, global financial market infrastructure provider with significant multi-asset capital markets capabilities, a leading data and analytics business and a broad post-trade offering, well positioned for future growth in an evolving landscape, the stock exchange says.

The Stock Exchanges reminds that the transaction remain a subject to the LSEG Board and that there is no certainty that the transaction would happen.

Business Finance

Luxury brands gained due to EU court ruling

The European luxury brands gained in the European Stock Exchanges today. The reason behind the upward trend was the EU court ruling saying that the luxury brand owners can have a say in which digital platforms the retailers can sell their luxury products.

Many luxury companies have been worried over the brand imago related to different digital platforms. The EU court ruling lifted stocks like Kering Group (KER) by 0,56 %, LVMH (LVMH) by 1,14 %, Burberry Group (BRBY) in London by 0,64 % and  Christian Dior (CDI) in Paris by 1,28%.

Global luxury brands have been building their digital presence and imago via social media during the couple of years, but also starting their own e-commerce platforms in order to make the customer dialoque direct and to keep the service level and personalization as expected.

Business Lifestyle

Merger of Equals: LSE and Deutsche Börse

The London Stock Exchange and the Deutsche Börse in Frankfurt have today published information about their merger of the equals. According to the statement this would create one of the top financial places globally and  bringing together European and global businesses.

The merger would establish European Capital Markets Union and thus driving the economic growth and job creation in Europe. It would mean better access to global financing and investors also to the European sme-companies. The new company would operate in over 30 countries with over 70 strategic partners.

Business Finance