Hong Kong stock exchange plans to buy London Metal Exchange for $2.2 billion
HONG KONG – Hong Kong’s stock exchange says it’s offering to buy the London Metal Exchange for 1.39 billion pounds ($2.2 billion).
Hong Kong Exchanges and Clearing Ltd. said Friday that it is offering 107.60 pounds for each of the 135-year-old exchange’s 12.9 million shares.
The Hong Kong bourse’s offer follows plans announced earlier this year to expand into commodities to capitalize on Chinese demand. The deal would mark a major shift away from its slow-growing equities business.
The Hong Kong exchange will use cash and new bank facilities of at least 1.1 billion pounds to finance the purchase.
The takeover still needs shareholder approval.
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