Canadian government to decide TMX/LSE merger deal: industry minister

Canadian Industry Minister Tony Clement said Wednesday that he is the one to decide if the proposed merger between TMX Group Inc., owner of the Toronto stock exchanges, and the London Stock Exchange (LSE) will get approval or not based on Canadian foreign investment law.


Clement made his remarks to reporters outside a Conservative Party caucus meeting on the same day some of Canada's biggest banks opposed the deal.


"They are going to put forward their opinion ... (but) we will do our research," said Clement, the minister responsible for overseeing foreign investment.


"I look at it from the factors found in the Investment Canada Act. That's what I am required to examine and that' s what I will be doing. This is about net benefit to Canada. That' s what I have to determine," added Clement.


Several of Canada's biggest banks opposed the deal Wednesday. Toronto-Dominion Bank led the charge to block the deal, issuing a joint statement with two other big banks claiming the transaction could result in the loss of numerous high-tech jobs and the reduction of Canadian companies' access to capital.


Canadian Imperial Bank of Commerce, National Bank of Canada, AltaCorp Capital Inc. and Casgrain & Co. also signed the document, arguing that the merger would effectively transfer a strategic asset into the hands of a foreign company.


Meanwhile, Bank of Montreal lined up with Royal Bank of Canada in support of the deal. The CEO of the country's largest bank, Gordon Nixon of the Royal Bank of Canada, has endorsed the deal as necessary to meet increasing competition as other exchanges merge and grow more powerful.


TMX Group and LSE announced they agreed the merger deal on February 9. Clement said at the same day the government will examine the deal to determine how Investment Canada Act relates to this transaction.
(Source:http://news.xinhuanet.com)