Singapore Moves Closer to Aussie Stock Exchange Deal

February 15th, 2011
in econ_news

 Econintersect:  The SGX (Singapore Stock Exchange) has raised the amount of its offer and conceded more equal control to the ASX (Australian Stock Echange) in the SGX attempt to merge the two exchanges.  GEI News reported on February 10 that the offer then stood at $7.9 billion.The latest offer is $8.4 billion.

Follow up:

Political forces in Australia have opposed the proposed merger.  The new proposed merger agreement is an attempt to defuse those objections.

According to the Financial Times:

In a joint announcement on Tuesday, the two exchanges said they had agreed to redraw the deal so that the board of the merged entity would eventually have an equal number of Singaporean and Australian directors.

Shares in ASX and SGX were placed in a trading halt on Tuesday ahead of the announcement, which comes as a wave of consolidation sweeps the global securities industry, helping promote the potential opportunities in an SGX-ASX tie-up.

Deutsche Börse and NYSE Euronext are on the verge of announcing details of a merger to create the world’s biggest exchange group by revenues and profits, while the London Stock Exchange last week said it planned to merge with Canada’s TMX Group.

Magnus Böcker, SGX chief executive, has consistently maintained that initial opposition to the deal in Australia can be overcome, and is known to view the current spate of exchange consolidation as a positive factor for the SGX/ASX merger.

Sources:  GEI News and Financial Times

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