London Metal Exchange shareholders approve Hong Kong sale

London Metal Exchange shareholders have voted overwhelmingly in favour of its proposed takeover by the Hong Kong stock exchange, the LME announced on Wednesday.

The Hong Kong Exchanges and Clearing (HKEx) last month agreed to buy the 135-year-old LME for 1.39 billion pounds (US $2.15 billion, 1.77 billion euros).

"Ordinary shareholders of LME Holdings have today approved, at a court meeting and an extraordinary general meeting of LME Holdings, all the resolutions required in connection with the proposed scheme of arrangement to implement the acquisition of LME Holdings by HKEx," a statement said.

The LME added that shareholders representing 99.63 percent of the group had voted to approve the takeover.

"I am delighted that our shareholders have overwhelmingly supported the board's recommendation," LME chief executive Martin Abbott added in the statement.

"The deal with HKEx, Asia's leading exchange, will secure the LME's position as the world's foremost metals trading venue."

The HKEx takeover offer for Europe's last open outcry exchange will be financed with cash and 1.1 billion pounds in bank loans. The deal values the LME at 107.60 pounds per share.

The LME is the world's largest exchange trading nonferrous metals, including copper and aluminum, while HKEx is the biggest exchange operator by market value.