TORONTO and LONDON, UK - Calling it a merger of equals, the TMX Group, operator of the TSX, and the London Stock Exchange Group (LSEG) plan to merge. The new company will be the world's largest exchange with 6,700 listings and a market value of approximately $5.8 trillion. With the support of natural resources, mining, energy and clean technology listings, the merged group promises to focus on growth.
LSEG-TMX will be jointly headquartered in Toronto and London, UK. Xavier Robet, currently LSEG CEO, will be CEO of the new company and based in London. Thomas Kloet, now CEO of TMX will be the president and based in Toronto. The new CFO will be Michael Ptasznik, currently CFO of TMX.
International offices will retain responsibilities for their areas of expertise: Toronto for primary markets, Montreal for derivatives, Calgary for energy, London for international listings, Milan for fixed income and equities trading. The group will also have offices in Colombo, Rome and Vancouver.
The deal is subject to shareholder and regulatory approvals.
Learn more at www.TSX.com and www.LondonStockExchange.com.
(Hot Topic: Do you believe the merger of the TSX and LSE will be a good thing or bad thing for Canadian mining companies? Go the CMJ website to vote in the Hot Topic Opinions box on the left.)
Comments
grmike
I don’t think it’s as risky for Canada as some analysts imply, Canada will have 7 of the 15 board member seats of the combined company which will be 48% bigger than the Nasdaq based on market cap of listings. If the Canadian portion grows faster it could eventually reach 50% and even surpass it. UK, Italy and Canada are 3 of the 9 biggest economies in the world (and 3 of the biggest exporters) connecting them like this will be very beneficial because China doesn’t have close ties with any other countries so it can’t instantly grow its exchange to a comparable size.
Access to investment improves but Canadian companies are more vulnerable to foreign takeovers.
One thing that isn’t being explained is how did joining the LSEG effect the Italian stock exchange ? They apparantly don’t have a board seat on the combined company and their boss doesn’t have a leadership position despite the Italian exchange being almsot half the size of the Toronto exchange. The Canadian government should demand that the London Group allow the leadership position to alternate between Toronto and London.