Hong Kong stock exchange plans to buy London Metal Exchange for $2.2 billion - InfoNews

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Hong Kong stock exchange plans to buy London Metal Exchange for $2.2 billion

A man walks in the Hong Kong Exchanges and Clearing Ltd. headquarters in Hong Kong Friday, June 15, 2012. Hong Kong's stock exchange operator said Friday it has agreed to buy the 135-year-old London Metal Exchange for 1.4 billion pounds (US$2.2 billion) as it shifts into commodities to capitalize on Chinese demand. (AP Photo/Kin Cheung)
June 15, 2012 - 5:01 AM

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.

News from © The Associated Press, 2012
The Associated Press

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