Toronto, London Stock Exchanges Won't Merge

Not enough shareholders in the company that runs the TSX voted in favour of the merger, meaning a Canadian group could be the new owner.

The plan to merge the Toronto and London stock exchanges disintegrated today because not enough TMX shareholders approved of the deal. While a majority signed off on the merger, the deal required two-thirds of shareholders to vote in favour of it. Tabulated votes indicated that they were just short of that threshold, paving the way for a group of Canadian business interests, namely the major banks and pension plans, to take over the country's largest stock exchange. Had the LSE/TMX merger been approved, it would have required the federal government to sign off on it, as any foreign takeovers worth $300 million or more must be reviewed by the industry minister to make sure the transaction would be in the best interests of Canadians.