Hong Kong’s stock exchange operator said on Wednesday that it was offering to purchase the parent company of the London Stock Exchange in a deal that, if completed, would value the British company at nearly $37 billion.
Hong Kong Exchanges and Clearing Limited said in a news release that a combination with the London Stock Exchange Group would result in a financial markets company “connecting the established financial markets in the West with the emerging financial markets in the East, particularly in China.” It also said that combining trading platforms would reduce costs.
Shares of the London Stock Exchange Group jumped more than 14 percent in early trading on Wednesday.
A spokeswoman for the London Stock Exchange said the company did not have an immediate comment.
Hong Kong Exchanges said its offer included both cash and stock valued at more than one-fifth higher than the London Stock Exchange’s trading value as of Tuesday. A deal would be subject to a number of conditions, Hong Kong Exchanges said, including completion of the London company’s deal to acquire Refinitiv, a provider of financial data.
The offer follows a wave of mergers among big stock exchange operators over more than a decade, as they seek to build up more sophisticated trading platforms to compete with the rise of electronic exchanges.