TMX Group (Toronto SX) And London Stock Exchange Agree To Merger

TMX Group (TSX:X), which operates the Toronto Stock Exchange, and the London Stock Exchange announced Wednesday they are merging to create one of the world’s largest stock exchanges.

The merger, which is subject to regulatory approvals, is unanimously being recommended by the boards of both exchanges.

The merger, if approved, would give the new firm a value of just over C$6 billion and give 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.

The company will be co-headquartered in Toronto and London with Xavier Rolet, the CEO of the London Exchange, retaining that position with the new company. The president will be Thomas Kloet, the CEO of TMX.

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Last Edited by the Quetzal on 02/09/2011 09:34 AM