News

Merger talks of Toronto and London Stock Exchanges

Toronto Stock Exchange, Toronto/ON, Canada (source: flickr/ joseph a, creative commons)
Alexander Richter 9 Feb 2011

The New York Times reports merger talks are ongoing between the London Stock Exchange and TMX Group, mother company of the Toronto Stock Exchange in Canada.

According to the New York Times this morning there are talks between the London Stock Exchange and the TMX Group, the mother company of the Toronto Stock Exchange, about a potential merger between the two exchanges.

The talks are in advanced stages and “if combined, the two would form what would probably be the largest market for mining and other natural resources stock”, so the NYT.

Both firms have confirmed negotiations after several media outlets have reported on it.

Supposedly it is discussed to co-headquarter the exchanges in Toronto and London.

But “any deal would probably face several political hurdles in Canada where foreign takeovers related to natural resources have become delicate issues.”

This is indeed quite interesting and one will have to see what this means for geothermal companies listed in Toronto. But given the popularity of the AIM market in London for small renewable energy firms, this could indeed be a positive thing.

Source: New York Times