The TMX Group, operator of the Toronto Stock Exchange and the Toronto Venture exchange, confirmed Tuesday it is in advanced merger talks with the London Stock Exchange Group on a possible merger.
Shares in TMX were halted Tuesday.
A spokeswoman for the TMX Group said the companies are considering a deal that would be a merger of equals. The TMX Group is valued at $2.99 billion, while the London group's value is around $3.25 billion.
The TMX Group said executives in the new company would be taken from senior leadership at both companies and be co-headquartered in Toronto and London.
A report in the Financial Times earlier Tuesday said the deal would make the new exchange group the world’s seventh-biggest exchange.
British media reports said LSE shareholders would hold just over 50 per cent of the combined company and that LSE chief executive Xavier Rolet was expected to lead the new firm while Wayne Fox, chairman of TMX Group, would be chairman. Thomas Kloet, TMX chief executive, would be president.
Both the TSX and the LSE are heavily weighted in mining and energy companies.
It was expected to report quarterly earnings Wednesday.
Read more: http://www.cbc.ca/money/story/2011/02/08/tmx-lse-merger.html#ixzz1DPdhOiCb