9.2.2011
By Simon Miller
The London Stock Exchange (LSEG) is to merge with Canadian diversified exchange group TMX in a £4.2bn all-share deal.
The merger, unanimously recommended by both exchange boards, will be jointly headquartered in London and Toronto and aims to offer an international gateway, leading global pools of capital formation and liquidity together with a unique portfolio of highly complementary markets, products, technologies and services.
The Boards of LSEG and TMX said the merger was strategically compelling and will create a more diversified business with greater scale, scope, reach and efficiencies, generating substantial benefits for all stakeholders:
The merger sees the creation of the largest exchange by companies over 6,700 companies with an aggregate market capitalisation of approximately £3.7 trillion - and the number one global listings venue for natural resources, mining, energy and clean technology,
Commenting on today's announcement, Chris Gibson-Smith, chairman of LSEG stated: "We are today announcing the creation of a global leader in the exchange space. Building on our own shared long histories of excellence in capital markets, financial strength and cultures of internationally respected governance, I believe that together we will be able to offer shareholders and customers a business significantly greater than the sum of our parts. This merger comes at a hugely important time in the history of capital markets."
Chairman of TMX Wayne Fox added: "Two highly successful and profitable institutions are joining forces to create a more diversified and international company. This merger of equals will benefit shareholders, issuers, customers, employees and other stakeholders of both organisations.”
The merged group will maintain its “existing centres of excellence and will assign global responsibility across its geographic footprint, with global leadership in: Toronto for primary markets (listings and other issuer services across the merged group); Montreal for derivatives; and Calgary for energy.
London will continue as a key centre for international listings with global responsibility for technology solutions, information services and post-trade services. Meanwhile, Milan will be the centre for fixed income and equities trading, and European post-trade.
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