By James Simons-
The chief executive of the London Stock Exchange has stressed his desire to seal a £27bn deal for data company Refinitiv in a clear sign of his resolve to resist a £31.6bn takeover from Hong Kong Exchanges and Clearing.
David Schwimmer told a conference in London that the acquisition of Refinitiv that he feels “very good” about the proposed $27 billion acquisition of data and analytics company Refinitiv, in which Thomson Reuters has a minority stake. He said the proposed acquisition will strengthen the LSE’s position in data and analytics, deepen its capabilities in fixed income trading, and expand the exchange into the $6.6tn-a-day currencies market.
Shwimmer said two big drivers of change going forward are the increasing importance of data and multi-asset class investment strategies. The American banker said two big drivers of change going forward are the increasing importance of data and multi-asset class investment strategies.
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STRONG FIT
“We think that the Refinitiv transaction is a very strong fit strategically from that perspective, and really positions the London Stock Exchange Group very well to take advantage of growth in these areas,” Schwimmer told a conference held by derivatives industry body ISDA.
“I don’t think there is a lot of controversy around the increasing importance and focus on data.
“We think that the Refinitiv transaction is a very strong fit strategically from that perspective, and really positions the London Stock Exchange Group very well to take advantage of growth in these areas,” Schwimmer told a conference held by derivatives industry body ISDA.
“I don’t think there is a lot of controversy around the increasing importance and focus on data.
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At the International Swaps and Derivatives Association’s annual European conference, the LSE CEO noted the “increasing importance” of data and analytics, and multi-asset trading and investment strategies.
Without explicitly referring to the HKEX bid, Schwimmer said the acquisition will also make the LSE “truly global”, giving it a bigger presence in the US and Asia.
His comments come just over a week after HKEX proposed a £31.6bn takeover of the LSE. Hong Kong is pursuing the takeover for now, engaging directly with shareholders in the hope that pressure will mount on the LSE to discuss the bid.
HKEX’s bid is conditional on the LSE abandoning it takeover of Refinitiv from a consortium led by private equity firm Blackstone. The Refinitiv deal has been widely welcomed by LSE shareholders, but HKEX thinks combining the two exchanges can bridge capital markets in the east and west.
Hong Kong’s bid comes at a time of political tumult. Violent protests continue to rock the former British colony, while the UK has been hamstrung by an inability to decide on whether it will leave the EU with or without a deal.
Rejecting the offer, the LSE said: “The ongoing situation in Hong Kong adds to this uncertainty.”
While HKEX has said it has had “constructive” early talks with regulators and policy makers, the LSE has warned that a deal between the exchanges would be subject to the “full scrutiny” of authorities.
The LSE’s agreement to buy Refinitiv came after several failed attempted deals with other exchanges, including the 2016 merger with Germany’s Deutsche Börse, a deal that was blocked by EU antitrust authorities
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