The Globe and Mail reported February 9 that The Toronto Stock Exchange and the London Stock Exchange are seeking to merge to create the world’s eighth-largest exchange operator. The deal would bring together two of the world’s biggest exchanges for mining stocks to create a global leader in mining and resource financing. The merger is likely to spark controversy over foreign mergers after the takeover battle for Potash Corp in 2010.
The proposed transaction is structured as a merger of equals, however LSE shareholders would end up owning more than half of the combined company, and the LSE’s chief executive is expected to be the head. Industry Minister Tony Clement commented, “Should these discussions result in a concrete investment proposal, I and my officials will look at how the Investment Canada Act applies.”