Ottawa Considering Review of TSX-LSE Merger

Industry Minister Tony Clement says he’s looking into whether the merger of the Toronto and London stock exchanges falls under the Investment Canada Act.

Clement is getting used to playing spoiler. First he blocked the takeover of Saskatchewan’s Potash Corp. by an Australian mining company, then he vowed to reverse the CRTC’s decision on usage-based billing. Now the industry minister says he will announce within days whether or not the TSX-LSE merger is eligible for review under the Investment Canada Act, which allows the government to block deals it deems do not represent a “net benefit” for Canada. Several concerns have been raised over the $3.2-billion deal that would combine Canada’s and the U.K.’s biggest stock exchanges, including the fact that it would make the ruler of Dubai, a major shareholder in the LSE, the largest shareholder of the Toronto exchange.