Exchange Merger: Singapore Exchange To Buy ASX For $8.3 Billion

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.