* To review impact on Toronto financial sector
* Will also look at impact on mining in province
* Ontario finance minister opposes transaction
VANCOUVER , Feb 21 The government of the
Canadian province of Ontario plans to set up an all-party
committee to review the London Stock Exchange's (LSE.L)
proposed $7 billion bid for Canada's TMX Group (X.TO), Canadian
newspapers reported on Monday.
The committee will look at the transaction's impact on
Toronto's financial services sector as well as the mining
industry in the north of the province, the papers said, quoting
unnamed government sources.
Toronto, which is Ontario's capital and Canada's financial
capital as well, is home to hundreds of thousands of jobs in
the finance industry.
The committee, which according to the Globe and Mail will
be headed by veteran Liberal provincial government member Gerry
Phillips, will also look at whether the deal provides a net
benefit to Canada.
The Ontario government, which is one of at least four
Canadian provincial governments with a regulatory say over the
transaction, has the power to block the deal on its own.
Last week, Ontario's Finance Minister Dwight Duncan told
the Globe that the province won't rush to halt a deal, but
would defer, for now, to Canada's federal government to decide
if a merger would benefit the country.
Ottawa's review, which could take up to 75 days, was the
logical first step, Duncan said.
Duncan has emerged as the takeover proposal's most vocal
critic. He has the support of the Legislature's other parties,
the Progressive Conservatives and the New Democrats, the Globe
(Reporting by Nicole Mordant; Editing by Jan Paschal)