The merger was announced early this morning by both companies. By 11am shares in the FTSE 250-listed London Stock Exchange Group were up by almost 9%, or 87.5p.
In a statement carried on both exchanges’ websites, the alliance was described as a “merger of equals” that would result in an “international exchange strongly positioned for growth”, that at once would be the world’s largest by number of companies listed as well as the largest listings venue for natural resources, mining, energy and clean technology.
However, the Financial Times this morning described the merger as “the first big strategic move by Xavier Roulet, chief executive of the UK bourse”, and quoted people “close to the situation” as saying that the London exchange would use its secondary shares listed in Toronto to acquire TMX.
Roulet is to head up the newly formed LSEG-TMG as chief executive, and continue to be based in London, while TMX chief executive Thomas Kloet will remain in Toronto as the combined entity’s president. Michael Ptasznik, chief financial officer of TMX, will be CFO, and Raffaele Jerusalmi –CEO of Milan’s Borsa Italiana, acquired by the LSE in 2007 – is director.
News of the merger comes after years of consolidation by the world’s stock exchanges, which have faced growing competition from new and increasingly important bourses, such as Hong Kong’s and Singapore’s, as well as from alternative trading platforms like Chi-X Europe.
To read the official statement on the London Stock Exchange’s website, click here. To visit the Toronto Stock Exchange’s website, click here.
