Big Banks to Oppose Merger of Toronto, London Stock Exchange

Four major Canadian financial institutions say the merger of TMX and LSE would diminish Canada’s influence on the world stage.

Scotiabank, TD, CIBC, and the National Bank of Canada are planning to oppose the deal to merge the TMX and LSE, which would create the largest securities exchange in the world but leave Canadian shareholders with less than half of the ownership of the new entity. Proponents of the deal say it would help expand Canada’s financial reach beyond its own borders, but critics claim it represents the takeover of a major national institution by a foreign company. The debate over the merger puts the Canadian government in the hot seat once again. The deal hinges on Ottawa’s approval, and the government’s decision to block the takeover of Potash Corp. by an Australian firm last year led to claims of protectionism.