The London Stock Exchange (LSE) has announced that it is in “advanced” talks with Toronto Stock exchange operator the TMX Group, with regards to the possibility of a possible merger.
The merged exchanges would become the world’s largest stock exchange for the mining industry and would be co-headquartered in both London and Toronto.
Reports suggest that the talks will conclude later this week – should the merger go ahead the combined value of the trading groups would be around £5.5bn.
A number of leading exchanges have merged in recent years.
Euronext was bought by the New York Stock exchange, while the International Securities Exchange faced a take over from Deutsche Borse in the US. The LSE, which has manage to fight off several takeover offers, has bought the Borsa Italiana.
“The LSE confirms that it is in advanced talks with TMX Group regarding a possible merger of equals to create an international exchange leader,” the exchange said.
Management of the newly merged group would be “drawn from a balance of leaders from both organisations”, it added.
“Of course some of the world’s biggest mining companies are on the LSE, and some of the world’s biggest gold companies, and hundreds if not thousands of smaller mining companies are in the TMX Group.
“It’ll allow them to have greater pools of liquidity and develop derivatives, but it’s not the big story. The big story would be a potential linkage with one of the Indian markets, or potentially Singapore or maybe China.”
“That’s where they will get into a much larger scale operation. As yet we don’t know anything, but watch India over the next few months.”