Singapore Exchange (SGX) is getting ready to make a $5.8-billion takeover offer for the Australian Securities Exchange (ASX), a move that would combine two of the biggest exchange operators in Asia, says a media report. Trading of shares of SGX and ASX was suspended on Friday afternoon.
“SGX, the Singapore exchange, is preparing to launch a takeover offer of more than A$6 billion ($5.8 billion) for its Australian counterpart, ASX, as early as Monday in a deal that would combine two of Asia’s biggest exchange operators,” UK daily Financial Times has reported. The report said ASX chief executive Robert Elstone held merger talks with SGX chief executive Magnus Bocker. “The deal is a sign that both exchanges recognise they cannot rely on their domestic markets for growth in a region where markets for stock, futures and options trading is growing faster than US and European markets for the first time,” it noted.
According to the publication, any deal faces significant regulatory hurdles in Australia. “The country’s authorities may demand some level of Australian management and board representation, while management’s headquarters is also likely to be a thorny issue,” it added.
