London Stock Exchange in merger talks

The London Stock Exchange is in advanced talks over a potential merger with Canadian bourse TMX, it has been confirmed.

A statement from the LSE said the possible tie-up would create “an international exchange leader” with headquarters in both London and Toronto.

The merger – which could be announced as early as this week – would see the creation of a group valued at around £5.5 billion, making it one of the world’s largest exchanges.

The expected merger follows a strategic partnership entered into by the LSE and TMX in 2009.

It has been reported that LSE chief executive Xavier Rolet would become chief executive of the new group, with his opposite number at TMX, Thomas Kloet, taking on the role of chairman.

In a statement, the LSE said tonight that it was in “advanced discussions with TMX Group Inc regarding a possible merger of equals to create an international exchange leader”.

It added: “Current discussions contemplate an exchange ratio close to the current market capitalisation of London Stock Exchange Group Plc and TMX Group Inc.

“It is currently contemplated that the executive management and senior leadership of the merged group will be drawn from a balance of leaders from both organisations.

“The merged group would be co-headquartered in London and Toronto and continue to be overseen by its existing regulatory authorities.”

The potential merger comes at a time of consolidation among the world’s bourses. In January, the Singaporean and Australian stock exchanges announced plans to merge.

Source: Press Association