LSE shareholders are sceptical and unwilling to let go of their ownership as Hong Kong Exchanges and Clearing (HKEX) has placed a £32 billion bid to take over the London Stock Exchange (LSE). Investors have also shown their concern regarding the regulatory and financial hurdles involving the deal.

Another key challenge which Hong Kong Exchanges and Clearing is to garner the support of British authorities who are not so keen to hand over control of the LSE to a foreign company with close links to China.

According to the deal, the Hong Kong Exchange and Clearing is offering £20.45 in cash and 2.495 newly issued Hong Kong Exchange shares for each LSE share.

With regard to the LSE takeover bid, Charles Li, chief executive of the Hong Kong Exchanges and Clearing told the media that, “The deal would redefine global capital markets for decades to come. Together, we will connect the east and west, be more diversified and we will be able to offer customers greater innovation, risk management, and trading opportunities.”

The LSE recently invested $27 billion to acquire London-based data and trading group Refinitiv. Even though LSE agreed to review Hong Kong Exchanges and Clearing’s audacious bid, according to reports, the takeover bid will be rejected by the LSE.

According to Guy de Blonay, a fund manager at Jupiter and a top-25 investor in the LSE, in the backdrop of the Refinitiv deal, it is uncertain whether shareholders will accept Hong Kong Exchanges and Clearing’s offer. His analysis is based on the fact that the Refinitiv deal has the potential to transform the business and add value over the long-term.

After the news of Hong Kong Exchanges and Clearing’s takeover bid of the LSE broke out, its shares fell as much as 3.7 percent in opening trade today.