Stocks

Singapore Exchange terminates merger pact with Australian Stock Exchange

PTI Singapore | Updated on April 08, 2011

The Singapore Exchange (SGX) has terminated its merger implementation agreement with the Australian Stock Exchange (ASX) after Canberra blocked the deal.

SGX and ASX entered into a merger deal on October 25, 2010.

But the Australian Treasurer, Mr Wayne Swan, rejected the proposed merger of the two exchanges, saying the $8.7 billion deal was not in Australia’s national interest.

He also pointed out that the SGX proposal was not a merger, but a takeover of Australia’s financial sector. Under the proposal, ASX would have become a subsidiary of SGX.

Meanwhile, SGX said in a statement that Asia would remain the world’s growth engine in the coming decades.

“SGX, as the Asian Gateway, is well-positioned to leverage on the opportunities within Asia’s vibrant and dynamic economies,” the statement said.

“As Asia’s most international exchange, we will continue to pursue organic as well as other strategic growth opportunities, including further dialogue with ASX on other forms of cooperation,” it said.

Published on April 08, 2011

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