Deals
LME Bid by Hong Kong Seen as Way to Expand Into China
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Hong Kong Exchanges & Clearing Ltd.’s bid for the London Metal Exchange, the most expensive bourse merger over $1 billion, is seen as a way for the LME to expand into China, the world’s largest buyer of metals.
China became the largest copper user in 2001, beating the U.S., and now accounts for 40 percent of global copper demand, compared with 13 percent in 2000, according to Royal Bank of Scotland Plc. The offer of 107.6 pounds a share, or 180 times LME’s 2011 net income, requires approvals from LME shareholders and the U.K. Financial Services Authority. It doesn’t need shareholder consent in Hong Kong.