Canada Will Review Proposed TMX/LSE Merger


OTTAWA—Canadian Industry Minister Tony Clement said he will review the proposed merger of London Stock Exchange Group PLC and TMX Group Inc. under federal legislation, and he has to be satisfied that it is of “net benefit” to Canada to approve the deal.

“The investor has informed me that an application will be filed soon,” Mr. Clement said in a brief news conference on Monday. “Where a transaction is subject to review, the investor must obtain my approval prior to implementing the investment. I only approve an application where an investment demonstrates that it is likely to be of net benefit to Canada.”

The move isn’t a surprise as the companies had said they expected the review. Mr. Clement said the process will be “thorough” and will involve provinces that are affected, as well as other federal departments.

He said Alberta, British Columbia, Ontario and Quebec have the opportunity to conduct their own regulatory reviews.

Mr. Clement didn’t say whether the provinces can veto the deal, or if he will overrule any such veto. Quebec Finance Minister Raymond Bachand has asked his province’s securities regulator to hold public hearings on the proposed deal.

Mr. Clement said the Investment Canada Act, the legislation under which he will review the transaction, doesn’t provide for holding public hearings at the federal level.


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