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FSA clears HKEx to buy LME.


29 November 2012 - The London Metal Exchange (LME) said today that UKa[euro](tm)s Financial Services Authority (FSA) had given the go-ahead to its proposed acquisition by Hong Kong Exchanges and Clearing Ltd (HKG:0388), or HKEx.

The deal, which was unveiled in June, is seen to be completed on or around 6 December 2012, subject to certain conditions, LME added.

Under the agreed terms, the buyer, which will carry out the transaction via its unit HK Investment (UK) Limited (HKeX Investment), will pay GBP1.388bn (USD2.2bn/EUR1.7bn) in cash to LME Holdings Limited, or GBP107.60 per unit. The purchase price will be covered with available cash and new bank facilities of at least GBP1.1bn.

The deal, which received approval by the targeta[euro](tm)s shareholders in July, is seen to provide LME with a platform for significant long-term growth via the expansion in Asia and particularly in China. On the other hand, it will allow HKEx to further develop its own commodity offering and diversify its revenue sources, the companies said in a previous statement.Country: UKSector: Banking/Financial Services, Metals/MiningTarget: London Metal Exchange (LME)Buyer: Hong Kong Exchanges and Clearing Ltd (HKEx)Vendor: LME Holdings LimitedDeal size in USD: 2.2bnType: Corporate acquisitionFinancing: Cash & Debt, Existing resourcesStatus: Agreed

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Publication:M & A Navigator
Date:Nov 29, 2012
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