The London Stock Exchange announced today that it would be joining with Canadian firm TMX Group Inc in an "all share merger of equals".
The new group, which will be headquartered in both London and Toronto, expects to gain £35 million in extra revenue after three years as a result of the merger, rising to £100 million after five years.
By the end of the second year the new group said it was aiming to see cost synergies of £35 million.
Xavier Rolet, CEO of the London Stock Exchange, will hold the same position in the new group, while Thomas Kloet, CEO of TMX will be President. Michael Ptasznik, CFO of TMX, will also be CFO of the merged company.
Mr Rolet, said of the merger, "This is an incredibly exciting merger with considerable growth opportunities. We are creating the world's largest listings venue for the commodities, energy and natural resources sectors, as well as the premium market for small, mid-size and growth companies. This new international leader, marrying the right cost structure, financial strength, technological expertise and product portfolio, will be strongly positioned to capitalise on growth opportunities in emerging markets and deliver them to our customers in North America, Europe and beyond. Together, we will also be uniquely positioned to offer high-performance, low-cost technology solutions to our exchange clients around the world. We are aiming at nothing less than becoming a true powerhouse in the global exchange business."
Mr Kloet added, "We are creating an international group with deep expertise, undeniable leadership in key sectors and the ability to compete and win on the global stage. Canadian customers will benefit from access to one of the world's deepest capital pools while European issuers will have an effective gateway to North American financial markets. With some of the most valuable and respected brands in the exchange world, this merger will open new growth opportunities for each of our businesses and all of our stakeholders. This merger brings together talented market professionals across a wide geography, positioning the group for continued leadership in financial markets."