London, Toronto stock exchanges agree on merger
2011-02-09 16:34:53
The London and Toronto stock exchanges announced a landmark merger on Wednesday to create one of the world's biggest trading platforms that will dominate raw materials and energy.
"London Stock Exchange Group plc and TMX Group Inc. today announced an agreement to combine Europe's and Canada's leading diversified exchange groups in an all-share merger of equals," the pair said in a joint statement.
"The merger will create a world-leading organisation and is unanimously being recommended by the boards of both LSE and TMX."
The transaction was billed as a merger of equals, but LSE investors will hold the upper hand with 55 percent of the new group. Both stock exchanges will retain their existing brand names.
The new enlarged company will be jointly headquartered in London and Toronto, and will be well-placed to tap into the booming commodities sector at a time of rocketing prices for many raw materials like copper and crude oil.
The LSE's chief executive, Frenchman Xavier Rolet, will take up the same role at the new group, while TMX boss Thomas Kloet will become president.
"This is an incredibly exciting merger with considerable growth opportunities," said Rolet in the statement.
"We are creating the world's largest listings venue for the commodities, energy and natural resources sectors, as well as the premium market for small, mid-size and growth companies," added Rolet, who became LSE boss in 2009.
The group will be the world's largest exchange in terms of the number of companies traded, with a total of more than 6,700 listings.
The deal is expected to be completed in the second half of this year, subject to shareholder and regulatory approvals.