Global Biz

Singapore Exchange bids to merge with Australian Exchange

(Xinhua)
Updated: 2010-10-25 10:42

SINGAPORE - The Singapore Exchange (SGX) and Australia's Australian Exchange (ASX) announced on Monday that they have entered into a merger implementation agreement.

Local TV broadcaster Channel NewsAsia said SGX has launched a $8.2 billion bid to merge with ASX.

The two exchanges said in a joint statement that this will enable customers globally to capitalize on listing, trading, clearing and settlement opportunities created through the expanded platforms, leveraging on the importance of Asia-Pacific as the driver of global growth.

Together, ASX and SGX will offer access to the second largest listing venue in Asia Pacific with more than 2,700 listed companies from over 20 countries and regions.

It will also offer the world's second largest cluster of companies in the resource sector (more than 900 listings), the largest REITs sector (over 80 listings) and the largest number of ETFs (over 100) in Asia Pacific.

ASX and SGX said they will remain separate legal and locally regulated entities, and will maintain their existing brands.

The synergies are expected to reap cost savings of about $30 million a year. The combined group is expected to have an increased weight in selected benchmark indices and will have added visibility among institutional investors globally.