London Stock Exchange merger with Canada’s TMX

The deal is reportedly worth up to £5.5bn.

The businesses, the London Stock Exchange (LSE) and TMX, will have a headquarters in both London and Toronto, and current LSE chief executive Xavier Rolet is expected to continue in that role for the merged group.

The deal will create the world’s largest trading platform by numbers of companies listed – over 6,700 – and seventh largest by market value. It will also be the largest forum for mining company listings at a time of high commodity prices, and for emerging and growth markets, as well as small businesses.

It will have a positive impact on the business communities in Canada, the UK and Italy. TMX Chairman Wayne Fox

It follows a strategic tie-up between the two companies in 2009, and comes at a time of consolidation in world stock exchanges. Last month, the Singaporean and Australian stock exchanges unveiled merger plans. The New York Stock Exchange has bought Euronext and the Deutsche Borse took over the US International Securities Exchange, and in 2007 the LSE bought Borsa Italiana.

Global leader

Chris Gibson-Smith, Chairman of LSE, said in a statement: “We are today announcing the creation of a global leader in the exchange space.

“Building on our own shared long histories of excellence in capital markets, financial strength and cultures of internationally respected governance, I believe that together we will be able to offer shareholders and customers a business significantly greater than the sum of our parts. This merger comes at a hugely important time in the history of capital markets.”

The Chairman of TMX Group Wayne Fox, added: “As important, it will have a positive impact on the business communities in Canada, the UK and Italy.”

LSE Chief Executive Mr Rolet said the business was aiming to be a “powerhouse” in the global exchange business.

The completion of the merger is subject to regulatory approval.