TMX Group and the London Stock Exchange Group announced plans for a massive merger, and within hours, speculation that another high profile financial transaction may be subject to Ottawa’s discretion has thrust Industry Minister Tony Clement and the Harper Government into the spotlight.
While the Government’s intentions are unclear, what is clear is that the merger creates a global listings powerhouse.
RBC Capital Markets, who is advising the LSE Group, would not comment. The same was true for BMO Capital Markets, who is ‘still restricted on the deal.’
What is known is that combining the Toronto Stock Exchange and the London Stock Exchange will create the largest trading venue in terms of listings with over 6,700 companies and a market capitalization of roughly $5.8 trillion.
The Merged Group, as it will be called, will also be the top listings venue in the world for natural resources, mining and energy. The Merged Group will feature 20 trading markets on two continents, an information gold mine for market data and cutting-edge trading technology.
“We are creating an international group with deep expertise, undeniable leadership in key sectors and the ability to compete and win on the global stage. Canadian customers will benefit from access to one of the world’s deepest capital pools while European issuers will have an effective gateway to North American financial markets,” said Thomas Kloet, CEO of TMX Group Inc.
The TMX Group and the London Stock Exchange Group merger will be subject to a swath of regulatory approvals, notably Investment Canada Act. Tony Clement cited the ‘net benefit’ clause of the Act when putting the kibosh on BHP Billiton’s hostile takeover bid of Potash Corp.
"TMX Group has announced it is in advanced discussions regarding a possible merger with London Stock Exchange Group. Should these discussions result in a concrete investment proposal, I and my officials will look at how the Investment Canada Act applies," said Tony Clement yesterday upon learning of the merger talks.
While the Government’s intentions are unclear, what is clear is that the merger creates a global listings powerhouse.
RBC Capital Markets, who is advising the LSE Group, would not comment. The same was true for BMO Capital Markets, who is ‘still restricted on the deal.’
What is known is that combining the Toronto Stock Exchange and the London Stock Exchange will create the largest trading venue in terms of listings with over 6,700 companies and a market capitalization of roughly $5.8 trillion.
The Merged Group, as it will be called, will also be the top listings venue in the world for natural resources, mining and energy. The Merged Group will feature 20 trading markets on two continents, an information gold mine for market data and cutting-edge trading technology.
“We are creating an international group with deep expertise, undeniable leadership in key sectors and the ability to compete and win on the global stage. Canadian customers will benefit from access to one of the world’s deepest capital pools while European issuers will have an effective gateway to North American financial markets,” said Thomas Kloet, CEO of TMX Group Inc.
The TMX Group and the London Stock Exchange Group merger will be subject to a swath of regulatory approvals, notably Investment Canada Act. Tony Clement cited the ‘net benefit’ clause of the Act when putting the kibosh on BHP Billiton’s hostile takeover bid of Potash Corp.
"TMX Group has announced it is in advanced discussions regarding a possible merger with London Stock Exchange Group. Should these discussions result in a concrete investment proposal, I and my officials will look at how the Investment Canada Act applies," said Tony Clement yesterday upon learning of the merger talks.
