Canada’s TMX Group, which operates the Toronto Stock Exchange is said to be in advanced talks with the London Stock Exchange for a possible merger.
If the proposed merger goes through, the new entity will be the biggest exchange for mining companies and will be co-headquartered in London and Toronto.
Sources with direct knowledge of the developments claim that the talks may conclude this week and the merged entity will be valued at £5.5 billion.
The stock exchange space has witnessed some consolidation in recent years with multiple cross-border transactions taking place. The NYSE (New York Stock Exchange) has bought Euronext while Deutsche Borse acquired the International Securities Exchange in US. The LSE was target for many hostile bids itself while it bought Borsa Italiana.
In a state issued by LSE, it said: “The LSE confirms that it is in advanced talks with TMX Group regarding a possible merger of equals to create an international exchange leader”, adding that the new entity will be headed by personnel “drawn from a balance of leaders from both organisations”.
The two exchanges are among the most important mining exchanges of the world. Some of the world’s biggest mining companies are listed in LSE while some of the biggest gold miners along with hundreds of small miners are listed with the TMX group.
Apart from Borsa Italiana, LSE operates the Turquoise trading platform along with European bond market MTS. TMX also operates the Boston Options Exchange and the Montreal Exchange among others.