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Who says mergers only happen to companies on the exchange?
The Singapore exchange has
agreed to buy Australia's ASX Ltd for $8.3 billion, as it looks to compete on a world stage for listings. It will create Asia's fourth-largest stock exchange.
Before the deal closes, there are significant regulatory hurdles in order to gain approval.
Tom Elliott, managing director of MM&E Capital spoke about these concerns. "There's quite a few regulatory hurdles for this, which is why the shares are trading below the notional value of the offer. There's FIRB and parliament has to actually approve it. You've got a strange parliament, you've got the rural independents. Nothing would surprise me. It just means this is going to take a while, so there's that uncertainty," he said.
SGX offered A$22 in chas plus 3.473 of its own shares per ASX share, which was a 37% premium to Friday's close.
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