The Hong Kong stock exchange has ended its takeover bid of the London Stock Exchange Group (LSEG), according to an announcement Tuesday.
The takeover bid first came to light last month when the Hong Kong Exchanges and Clearing Ltd (HKEX) proposed $39 billion plan to buy the LSEG.
“HKEX is disappointed that it has been unable to engage with the management (of the London Stock Exchange) in realizing this vision,” said HKEX in a statement.
LSEG heads rebuked the offer and analysts believe the HKEX needed to raise the bid by 20 percent to have any realistic chance of acquiring the bourse.
The LSEG chairperson Don Robert sent a quick reply to the Hong Kong bourse after the offer last month and said he didn’t believe the buyout was in the best long-term interest of the UK bourse considering Hong Kong’s current volatile environment due to pro-democracy protests that have rocked the territory for months.
“We do not believe HKEX provides us with the best long-term positioning in Asia or the best listing/ trading platform for China,” wrote Robert.