Slaughter and May is advising the Hong Kong stock exchange on its surprise £31.6 billion offer to acquire the London Stock Exchange (LSE).

Hong Kong Exchanges and Clearing (HKEX) has proposed to buy the LSE, on the condition that the LSE scraps its proposal to buy data firm Refinitiv for approximately $27bn.

According to a spokesperson at Hong Kong Exchanges and Clearing, Magic Circle firm Slaughter and May is advising the stock exchange on the deal.

A person close to the situation said London-based corporate partner David Watkins is involved in the matter.

He spent a seven-year stint in Slaughters' Hong Kong office until 2018, when he relocated to its London base.

Freshfields Bruckhaus Deringer is the most likely firm to take the opposite advisory role to Slaughters, having been a longstanding counsel to the LSE. The firm is currently advising the LSE on its attempt to take over financial data provider Refinitiv for $27 billion.

No advisers for the proposed deal from HKEX have so far been confirmed, however.

Slaughter and May declined to comment.