Newspaper article The Evening Standard (London, England)

LSE Claims City Will Be Winner in [Pounds Sterling]4.5bn Tie-Up with Toronto

Newspaper article The Evening Standard (London, England)

LSE Claims City Will Be Winner in [Pounds Sterling]4.5bn Tie-Up with Toronto

Article excerpt

Byline: Nick Goodway

THE London Stock Exchange and TMX Group, which operates the Toronto Stock Exchange, are to merge, they announced today.

This is the first major deal struck by the Exchange's chief executive Xavier Rolet as he battles to maintain London's position against a succession of new trading platforms.

The deal was signed off in Toronto in the early hours of this morning, London time.

The LSE and TMX today said they would combine in an all-share merger of equals, creating one of the largest exchanges in the world valued at some [pounds sterling]4.5 billion. LSE shares rose 10% -- up 86p to a near three-year high of 978p.

A combination of the London and Canadian exchanges would create the world's biggest bourse for mining and energy stocks.

Rolet -- who will become chief executive of the merged exchanges -- said: "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, medium-size and growth companies.

"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."

The combined exchange would be the world's largest in terms of companies, with more than 6700 listed on it.

The LSE and TMX said they expect to realise annual savings of [pounds sterling]35 million by the second year of the merger. Most of that will come through IT savings, but there will be job losses among the combined workforce of just above 2000.

LSE chairman Chris Gibson-Smith said: "For the LSE this is a huge next step. It will generate significant wealth for shareholders. …

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