Singapore, Australia bourses in mega merger
Tuesday, 26 October 2010
SINGAPORE, Oct 25 (AFP): The Singapore and Australian stock exchanges Monday announced a multi-billion dollar merger that will create one of the world's largest and most diversified financial trading hubs.
Singapore's SGX offered 8.2 billion US dollars to take over Sydney-based ASX to form ASX-SGX Ltd, which will be the world's fifth largest listed exchange group after Hong Kong, Chicago, Brazil and Germany, bourse officials said.
A joint statement said the deal will create an expanded platform for global customers to tap listing, trading, clearing and settlement opportunities in Asia, driver of the world's recovery from its worst recession since the 1930s.
The exchanges will keep their "iconic" brands while combining the strengths of the resource-rich Australian bourse with Singapore's more international profile and strong links to the booming China market.
ASX-SGX will also offer access to the largest institutional investor base outside the United States, with total assets under management of 2.3 trillion dollars, including money held by pensions and sovereign wealth funds, the statement added.
"In 2020, in less than 10 years from now, nearly half of the global GDP will be in Asia-Pacific," said Magnus Bocker, the SGX chief executive who will become CEO of the combined group.
"It's an opportunity that we cannot let go," he added in a news conference.
In terms of total number of listings, the ASX-SGX will overtake Tokyo to become the second largest listing venue in the region after Bombay, offering more than 2,700 companies from over 20 countries including 200 from Greater China, the joint statement said.
"There's no doubt that this is a landmark combination. We're trying to act ahead of the curve, be proactive in a world of change quickly," Bocker said.
The Wall Street Journal said the merger could create a roughly 1.9 trillion US dollar market.
ASX shares, placed in a trading halt last Friday at 34.96 Australian dollars, soared on the announcement when they resumed trading Monday, surging as much as 25 per cent before closing at 41.75 dollars, a gain of 19.4 per cent.
SGX shares were 5.24 per cent lower at 9.04 Singapore dollars by mid-afternoon.
The takeover bid, expected to be completed in the second quarter of 2011 subject to regulatory approval, valued the ASX at 48 Australian dollars.
Singapore's SGX offered 8.2 billion US dollars to take over Sydney-based ASX to form ASX-SGX Ltd, which will be the world's fifth largest listed exchange group after Hong Kong, Chicago, Brazil and Germany, bourse officials said.
A joint statement said the deal will create an expanded platform for global customers to tap listing, trading, clearing and settlement opportunities in Asia, driver of the world's recovery from its worst recession since the 1930s.
The exchanges will keep their "iconic" brands while combining the strengths of the resource-rich Australian bourse with Singapore's more international profile and strong links to the booming China market.
ASX-SGX will also offer access to the largest institutional investor base outside the United States, with total assets under management of 2.3 trillion dollars, including money held by pensions and sovereign wealth funds, the statement added.
"In 2020, in less than 10 years from now, nearly half of the global GDP will be in Asia-Pacific," said Magnus Bocker, the SGX chief executive who will become CEO of the combined group.
"It's an opportunity that we cannot let go," he added in a news conference.
In terms of total number of listings, the ASX-SGX will overtake Tokyo to become the second largest listing venue in the region after Bombay, offering more than 2,700 companies from over 20 countries including 200 from Greater China, the joint statement said.
"There's no doubt that this is a landmark combination. We're trying to act ahead of the curve, be proactive in a world of change quickly," Bocker said.
The Wall Street Journal said the merger could create a roughly 1.9 trillion US dollar market.
ASX shares, placed in a trading halt last Friday at 34.96 Australian dollars, soared on the announcement when they resumed trading Monday, surging as much as 25 per cent before closing at 41.75 dollars, a gain of 19.4 per cent.
SGX shares were 5.24 per cent lower at 9.04 Singapore dollars by mid-afternoon.
The takeover bid, expected to be completed in the second quarter of 2011 subject to regulatory approval, valued the ASX at 48 Australian dollars.