TORONTO, June 3 London Stock Exchange Group
(LSE.L) and its takeover target, TMX Group (X.TO), said on
Friday Canadian competition authorities won't challenge the
proposed combination of two exchange operators.
The issuance of the no action letter, which was expected,
satisfies a condition of a Feb. 9 agreement by LSE and the
company that operates the Toronto Stock Exchange to join forces
in a $3 billion deal.
The deal faces a separate review under the Investment
Canada Act, under which the federal industry minister will
decide whether TMX's combination with the foreign-based LSE
will carry a net benefit to the country.
The exchanges said on Wednesday the British listings
authority and the Ontario Superior Court of Justice approved
their merger prospectus. [ID:nLDE750352]
The approvals pave the way for shareholder votes in London
and Toronto on June 30.
A consortium of nine major Canadian banks and investment
funds called Maple Group Acquisition Corp has made a hostile
offer for TMX worth C$3.6 billion ($3.7 billion).
The LSE proposal was not expected to raise any red flags
from Canadian competition authorities, unlike the Maple bid.
The Maple bid would involve TMX acquiring Alpha Group, the
main alternative trading system in Canada, which competes
directly with the TMX's Toronto Stock Exchange and the Toronto
The Maple deal won't face an Investment Canada review
because the group is made up of Canadian-based investors.
(Reporting by John McCrank; Editing by Frank McGurty)