Maple-TMX deal wins final regulatory approvals

Wed Jul 11, 2012 7:04pm EDT
 
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By Euan Rocha and Jennifer Kwan

TORONTO (Reuters) - The C$3.8 billion ($3.72 billion) acquisition of Canada's TMX Group cleared its final regulatory hurdles on Wednesday, allowing a financial consortium to take control of all of the country's major securities exchanges and related businesses.

Concluding a year-long review process, regulators in the provinces of British Columbia and Alberta approved Maple Group's acquisition of TMX - the operator of the Toronto Stock Exchange and TSX Venture Exchange for small-capitalization stocks.

Under its broad proposal, the consortium of Canadian banks, insurers and pension funds will also acquire TMX's biggest rival, Alpha, as well as the Canadian Depository for Securities, which settles all stock trades in the country.

"We are happy that the deal is going to be concluded and that we will have a strong national stock exchange," said Thomas Caldwell, chairman of Caldwell Financial, which owns shares of TMX.

Regulators in the provinces of Ontario and Quebec, and the federal Competition Bureau, approved the deal earlier in July.

Canada has no national securities regulator, which means Maple needed the blessings of multiple watchdogs for its bid to succeed.

COMPLEX DEAL

TMX agreed to back Maple's bid last October, after initially rejecting an unsolicited offer that the banks and their partners put together to scupper an earlier offer by the London Stock Exchange.   Continued...