TMX says LSE combination would help it compete

Mon Mar 7, 2011 5:10pm EST
 
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TORONTO (Reuters) - A TMX Group executive said on Monday the company's pending combination with the London Stock Exchange will help TMX maintain its competitive advantage within the industry.

"The benefits of this are in maintaining competitive advantage," Kevan Cowan, TMX Group head of equities, told the Prospectors and Developers Conference (PDAC) in Toronto.

Rejecting the bid would risk losing that advantage, he said. "Size really makes a difference."

TMX, which operates the Toronto Stock Exchange and the junior TSX Venture Exchange, lists more mining companies than any other exchange operator in the world.

LSE offered about $3.1 billion in stock to take over TMX last month. The deal is currently winding its way through a complex approvals process in Canada.

(Reporting by Pav Jordan; Writing by Cameron French)