Hong Kong stock exchange drops bid to buy London exchange

The Hong Kong stock exchange officially dropped it takeover bid for its London counterpart on Tuesday.

Hong Kong Exchanges and Clearing Ltd. said it was "unable to engage" with managers of the London Stock Exchange Group.

The Hong Kong Exchanges made the surprise $36.6 billion offer in mid-September.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The London exchange cited concerns including the Hong Kong exchange's ties to the government of the Chinese territory. That gives the mainland's ruling Communist Party influence over its operations.

The acquisition would have created a $70 billion company.

CLICK HERE TO READ MORE ON FOX BUSINESS

The London Stock Exchange Group also owns the Milan exchange and the Russell Indexes in the United States.

The Associated Press contributed to this article.