The architects of the London Stock Exchange's (LSE.L) proposed takeover of TMX Group <X.TO defended the transatlantic tie-up to skeptical lawmakers on Wednesday as they faced the first of a series of government and regulatory hurdles. An Ontario legislative review of the deal that began on Wednesday is not in itself legally binding. But it will likely influence regulatory and federal government reviews that have the power to derail the LSE's C$3.1 billion ($3.2 billion) friendly takeover of TMX, operator of the Toronto Stock Exchange. In questions to the chief executives of the two exchanges, Ontario legislators challenged the notion that the deal is necessary if TMX is going to stay competitive with other consolidating global exchanges. They echoed widespread concern that Canada would cede authority over its own financial markets if it let the deal go through.
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