News Summary: HK exchange makes bid for LME

AP News
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Posted: Jun 15, 2012 2:10 PM
News Summary: HK exchange makes bid for LME

CHINESE DEMAND: 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 ($2.2 billion) as it shifts into commodities to capitalize on Chinese demand.

EXPANSION: The Hong Kong exchange's offer follows plans announced earlier this year to expand into commodities. That makes a major shift from its slow-growing equities business.

GROWTH OPPORTUNITY: Hong Kong Exchanges said the deal would provide a platform for "significant revenue growth" as LME expands its business and operations in the region.