No competition challenge for LSE/TMX merger

London Stock Exchange Group and its takeover target, TMX Group, said Friday Canadian competition authorities won’t challenge the proposed combination of two exchange operators. The issuance of the no action letter 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.

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.

Canoe Money reports:

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.