Bloomberg News

Maple Group Clears Final Regulatory Hurdles in TMX Takeover

July 11, 2012

TMX Group Inc.’s takeover by a group of Canadian banks and pension funds has been accepted by regulators in British Columbia and Alberta, clearing the final regulatory hurdles for the C$3.73 billion ($3.66 billion) transaction.

Maple Group Acquisition Corp., whose dozen members include Toronto-Dominion Bank (TD), Canada Pension Plan Investment Board and Manulife Financial Corp. (MFC), received approvals today from the British Columbia Securities Commission and the Alberta Securities Commission for final rules that allow it to operate an exchange.

Maple said in a statement that it agreed to the terms by the regulators, which include guarantees that 25 percent of the TMX board will have expertise with small companies and maintaining a Vancouver office.

Maple’s transaction will combine Canada’s main stock markets -- the Toronto Stock Exchange, TSX Venture Exchange and Alpha Exchange -- along with the Montreal Exchange derivatives bourse and the Canadian Depository for Securities Ltd. clearing house under one company.

Maple seeks to acquire 70 to 80 percent of TMX shares for C$50 a share in a tender offer that expires July 31. The group ultimately intends to buy 100 percent of TMX and integrate it with CDS and bank-owned Alpha Group.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; David Scanlan at dscanlan@bloomberg.net


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus