* Panel to recommend TMX/LSE deal with conditions
* Report will be presented to legislature April 19
(Adds details, background)
By Claire Sibonney and Pav Jordan
TORONTO, April 13 London's proposed C$3 billion
($3.2 billion) takeover of Canada's main stock exchange
operator TMX Group (X.TO) will be approved with conditions by
an Ontario legislative committee, a source familiar with the
panel's report told Reuters on Wednesday.
The report is likely to set the tone for a series of
regulatory tests of the controversial deal to take over TMX,
owner of the Toronto Stock Exchange.
The source asked not be identified because the
recommendations will not be made public until April 19.
Reuters reported last week that one committee member, a
critic of the deal, would issue a minority report that opposes
the majority recommendations. [ID:nN12210046]
Sources say conditions will likely include more clarity on
regulatory roles and on the makeup of the new entity's board of
The tie-up with the London Stock Exchange (LSE.L) would
create a $7 billion transatlantic exchange doing $4 trillion in
annual trading, but critics argue that Canada could lose
control of its capital markets to a British holding company as
a result of the deal.
Among the deal's early and vocal critics was Ontario
Finance Minister Dwight Duncan, though he recently softened his
The committee's report is not binding, but it is expected
to carry weight with provincial securities regulators, and with
federal government officials, who will have to approve the deal
in a multilayered process that won't be over for months.
The province of Ontario, whose capital, Toronto, is
Canada's financial center, formed the all-party legislative
committee to review the deal soon after it was proposed in
(Editing by Peter Galloway)