Saturday, March 12, 2011

SGX Lodges Application with Australia’s FIRB for Proposed ASX Merger

The Singapore Exchange (SGX) on Friday lodged a formal application

with Australia’s Foreign Investment Review Board (FIRB) for its

proposed merger with the Australian Securities Exchange (ASX).
This move came after both exchanges announced on February

15 amendments to the proposed merger implementation agreement

that also included new governance arrangements.

Under the revamped merger proposal, both sides pledged to

have an equal number of directors from each country on the

board of the merged entity in a bid to overcome political obstacles

in Australia.

While the FIRB has 30 days to decide on the merger, the deadline

may be extended if necessary.

Should the FIRB give its nod, the merger proposal will then go to

the Australian Treasurer, Wayne Swan, for final approval.

Swan will have to decide whether to lift the 15-per cent cap on

foreign ownership for ASX.

SGX said it will make announcements and update shareholders

as approval processes are cleared.

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