Tough Regulatory Hurdles Lie Ahead for SGX-ASX Merger

Tough regulatory hurdles lie ahead for the first big merger of two Asia-Pacific bourses--Singapore Exchange (SGX) Australia's ASX Ltd. The former is to buy ASX in a US$8.2 billion takeover, creating Asia's fourth-largest stock exchange, reports the South China Morning Post.

 

The hurdles include getting approval from Australia's Foreign Investment Review Board (FIRB) and getting the country's parliament to lift a 15% ownership cap on the ASX.

 

The union of the two bourses would save operators US$30 million a year in costs and make them more competitive, says the Post. The merger would also create a company with a combined market capitalisation of about US$12.3 billion, positioning it as the world's fifth largest. The combined entity would have about US$3.5 billion of debt.

 

The deal is expected to be finalised in the second quarter of next year.

 

 

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