The London and Toronto stock exchanges abandoned plans for a C$3.6 billion merger on Wednesday, as it became clear they would not win enough shareholder support for their transatlantic alliance. In brief statements issued just one day before a shareholder vote, the exchanges said they realized TMX Group (X.TO) shareholders would not give them the two-thirds majority they needed to approve their friendly deal. The London Stock Exchange (LSE.L) would have owned 55 percent of the new venture, designed as a powerhouse in resource and energy equity. It could now become a takeover target itself in the wave of global exchange consolidation. TMX Group, operator of the Toronto Stock Exchange, said it would now review opportunities, including a hostile offer from a Canadian consortium.
TMX Group Inc. is an integrated, multi-asset class exchange group. Shares of X traded higher by 6.37% or $2.76/share to $46.07. In the past year, the shares have traded as low as $36.93 and as high as $64.03. On average, 8585360 shares of X exchange hands on a given day and today's volume is recorded at 12785991.
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