Singapore bourse bids to merge with Australian exchange

SINGAPORE - The Singapore Stock Exchange (SGX) said Monday it has entered a merger agreement with Australian bourse operator Australian Stock Exchange Ltd (ASX), in a move that would create one of the largest stock exchanges in the world.

The proposed deal would have a volume of about $8.3 billion in cash and stock bid, SGX said in a statement.

“The combination of ASX and SGX will create the world’s fifth-largest listed exchange group with a broad international shareholder base,” it said.

If approved by Australian regulators, the deal would be the first major consolidation of exchanges in the Asia-Pacific region amid growing competition.

The new group would “increase ASX’s and SGX’s competitiveness in a changing global markets landscape”, the statement said.

The Singapore exchange has a market value of about $7.7 billion against $6 billion for its Australian counterpart.

According to the statement, ASX and SGX would remain separate legal and locally regulated entities.

Being the holding company of the combined group, the new ASX-SGX Ltd would be listed on both the Singapore and the Australian exchanges.

SGX chief executive Markus Boecker was set to become CEO of the combined group, while current ASX chairman David Gonski would move to deputy chairman.

ASX shareholders would receive 22 Australian dollars ($21.8) cash for each share they hold and 3.47 new SGX shares, said the Singapore company.