TSX Agrees to Merge With London Stock Exchange

The merger will create the world’s largest exchange operator in mining and energy stocks.

This deal should be good for a few farthings, wot? TMX, the company that operates the Toronto Stock Exchange, has agreed to merge with the London Stock Exchange Group to create giant entity jointly headquartered on both sides of the Atlantic. TMX is valued at $2.9 billion and the LSEG at $3.25 billion. To complete the deal, which would give Canadian investors access to deep pools of European capital, TMX would have to change one of its rules that prevents any group from owning more than 10 per cent of the company. Industry Minister Tony Clement announced he would investigate whether the deal complies with the Investment Canada Act, which ensures deals with foreign companies are in the national interest.