TORONTO - The company that runs the Toronto Stock Exchange is in advanced talks with the London Stock Exchange Group regarding a possible merger — a deal that would create one of the world's largest stock exchange operators.
TMX Group spokeswoman Carolyn Quick said late Tuesday the companies are considering a deal that would be a merger of equals.
Any share exchange ratio would be close to the current market value of each company, giving the new firm a value of just over C$6 billion and giving LSE shareholders just over 50 per cent of the combined company.
TMX Group is valued at C$2.99 billion, while the London Stock Exchange Group's value is slightly higher, around C$3.25 billion.
The merger would see the new company become the world's biggest exchange operator for mining and energy stocks, which have been key drivers of growth for both companies.
Executives in the new company would be taken from senior leadership at both companies and it would be co-headquartered in Toronto and London.
Shares of TMX Group, which closed up 38 cents at $40.28 on the Toronto Stock Exchange, were halted Tuesday amid reports of the talks.
The company is scheduled to report its quarterly earnings on Wednesday morning.
In addition to the Toronto Stock Exchange, TMX Group also operates the TSX Venture Exchange, Montreal Exchange, Natural Gas Exchange, Boston Options Exchange, Shorcan and Equicom.
The London Stock Exchange Group operates the London Stock Exchange and the Italian stock exchange Borsa Italiana.
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