Hong Kong Exchanges and Clearing failed where many others trod in the game of international exchange consolidation. However, as the dust settles on its £1.388bn acquisition of the London Metal Exchange, many in the market are claiming that it overpaid.
After so many high profile mergers fell through in 2011 and
early 2012, the prospects for exchange mega-deals was bleak.
But last month, Hong Kong Exchanges and Clearing succeeded in
its bid to acquire the London Metal Exchange and there appears
to be little resistance to the deal from the governing bodies
on each side.
It’s hard to deny that the LME got a pretty
sweet deal from HKEx. The fact that the CME, NYSE and the
IntercontinentalExchange all made bids for the exchange put the
LME in a real position of power and allowed it to dictate some
However, the deal was not just about the price, although
coming in at a whopping £1.388 (a lucky number for the
Chinese exchange) it was obviously a factor. The preservation
of the open-outcry model was reported to be a key factor in the
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