SEARCH

Business » Markets

Updated: February 9, 2011 19:11 IST

London, Toronto exchanges announce merger

AP
print   ·   T  T  
The exterior of the London Stock Exchange (LSE), London. File photo
AP
The exterior of the London Stock Exchange (LSE), London. File photo

The companies will merge to create one of the world's largest stock markets.

The London Stock Exchange Group PLC and TMX Group Inc., which operates the Toronto Stock Exchange, are merging to create one of the world’s largest stock markets, the companies announced on Wednesday.

The deal will be an all—share merger of equals, with headquarters in the U.K. and Canada. Both exchanges are heavily weighted with mining stocks and a combination would create the world’s biggest exchange for mining and energy stocks.

The companies said they expect to realize annual savings of 35 million pounds ($56 million) by the second year of the merger.

LSE Chief Executive Xavier Rolet will be CEO of the new company, LSEG—TMX, while TMX CEO Thomas Kloet will become president.

“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,” Mr. Kloet said.

Mr. Rolet said, “We are aiming at nothing less than becoming a true powerhouse in the global exchange business.”

LSE shareholders will hold 55 percent of the new company and TNX will have 45 percent of the enlarged share capital. The merged group will be listed in Toronto and London.

The combination will have the world’s largest number of listing, more than 6,700 companies with an aggregate value of $5.8 trillion, the partners said.

For the year ending September 30, the London exchange reported revenues of $1.03 billion while TMX report $636 million.

LSE Group also owns Borsa Italiana in Milan, while TMX also operates the Montreal Exchange, the NGX energy business in Calgary, and the TSX Venture Exchange in Calgary and Vancouver.

More In: Markets | Business

Commodity prices

Take a look at the prices of various commodities in Chennai here»


O
P
E
N

close

Recent Article in Markets

Gold prices recovered to Rs. 27,310 per ten grams on Saturday. File Photo

Gold recovers on fresh demand; silver remains weak

Gold prices recovered by Rs. 85 to Rs. 27,310 per ten grams at the bullion market in the national capital on emergence of buying by jewe... »