Little Press: Andrew Mitchell, an analyst with Charles Stanley Securities, predicted the deals signalled a new wave of consolidation in the sector. He described the Deutsche/NYSE tie-up as “a much more substantial beast,” and added: “The consensus is that we will end up with a handful of global exchanges.”
Deutsche Börse and NYSE Euronext, the world’s second and third biggest exchanges by revenue, have revealed they are in “advanced merger talks”, shocking the markets and dramatically upstaging confirmation that the London Stock Exchange is to take over TMX Group, Canada‘s largest exchange.
The proposed German-US deal will create the world’s second most valuable stock exchange group with a combined worth of about $24bn (£15bn), as well as the largest operator by revenues and profits. By contrast, the combined market capitalisation of LSE and TMX is $6.9bn. Source: Guardian (1)
What’s the bottom line?
Canadians (and Americans) are made up of people who left their homelands to get out from under the class system and thumbs of nations where most ownership is controlled by the few (about 4% controls 90% of everything) and chances of upward mobility is rare for citizens and corruption is the normal state of affairs.
Losing the 10 percent ownership rule is clearly being set up for one group of elites to control the mining and resources trading of the whole world. Also these trade talks with the notoriously corrupt European economic union at the same time is very disturbing. If anything the London exchange should have the 10% ownership rule before being allowed to merge with the TMX.
We should be holding all the marbles as the European Union is failing radically right now nation by nation, and giving up all our marbles is a bad strategic move on the part of our National Sovereignty.
The fact is that the TMX is relatively a class act compared to the London exchange (not saying much really but still to be considered)
Any merger should remain closer to the existing rules not vice versa.
Given the intrinsic corruption of the European elites this development should be seen as quite dangerous. In short it is time for Canadians to be calling the shots. They have the oil, they have the resources. Europe needs these things even as their Union unravels and it should be on Canada’s terms.
While some appear to be primarily concerned with transaction costs, and others with unfettered access to foreign markets, there are other components to such a merger that blind lust for financial profit ignore.
As sovereign economies race headlong into spurious ‘one-world new-order economics crashing repeatedly into a terminally cancerous fractional reserve monetary light bulb, one must consider the fleeting delusional frivolity of myopic investment practices within a world economy doomed to utter oblivion. The morning is coming, the dead and dying moths will be swept away by a resource-based true ‘new world order’ and the power elite’s megalomaniac reign will finally end as all similar power structures have throughout our brief and fragile human experience.
One need only explore the diseased phenomenon of commodity market derivatives to envision the soon-coming catastrophic and very necessary final collapse of the world’s financial system we have allowed to perpetuate in the name of profit and power.
Others may think it is a good thing and that it’s very good news, because the merger will increase the exposure and volume of both stock exchange platforms on the global scene and will bring more opportunities for Canadian and European companies to finance and expand their operations in Canada and overseas. The potential is huge and will pay off in the future. Very well-executed and strategic move from LSEG (London Stock Exchange Group) and the timing is excellent. The price is also right.
[Canadian]TSX is a strategic asset, says Duncan by CTV
Ontario Finance Minister Dwight Duncan says the Toronto Stock Exchange is a strategic asset in Canada’s largest city and decisions about its future must be made in the public interest, not just for shareholders.
The proposed takeover of TMX Group Ltd. (TSX:X) by the London Stock Exchange in what has been called a “merger of equals” requires various approvals, including from Canadian provincial regulators and the federal industry minister.
Industry Minister Tony Clement decided last year to block the US$38.6-billion takeover of Potash Corp. of Saskatchewan (TSX:POT) because it didn’t meet the act’s test of “net benefit” to Canada.
Clement has provided little detail about his reasons for making that decision, which came after intense lobbying by Saskatchewan Premier Brad Wall, except to say PotashCorp was a strategic asset to Canada.
Duncan reiterated Friday at the Ontario legislature that the province considers the TSX to be strategically important.
“I guess when you announce something like this … on what I would call a strategically important industry to this country’s largest city and largest province, not to mention its impact on Quebec and British Columbia, of course there are political considerations,” Duncan said. Source: CTV (2)
This was all predicted
Mr Duncan, please listen to the people of Canada who do not want this merger. If they approve this merger, Canada stands to be swept under and absorbed by the British. Don’t be the name to go down in history as the man who approved the sellout of his country. Canada remained stable during the recent economic meltdown because of non aggressive policies and good decision making. we know how to tighten our belts when we have to, and more important, we can and do when we see bad news on the economic horizon. This is a disastrous economic tornado of a downfall for Canada. Imagine where Canada’s economy would be today if we had hitched our wagon to the LSE prior to 2008. Furthermore, we don’t need the NYSE speculating in our area either. Don’t take away our integrity, especially that of our banks. We stand to lose more than to gain. This merger is based on greed, not sound business sense. Our future is in your hands sir. Look at what has happened in Britain. (the inmates have taken over the asylum). The British has totally lost their identity, and in part because their immigration has brought the country to it’s knees. For the first time in our history, the people of Canada should protest outside parliament that this merger must not be approved.
This had all been predicted/reported in a summary – in a report written in 1977 – by an American activist Professor of Economics – that by the end of 2010 (sorry, he was a bit off in his timing) stock markets will merge in an effort to shrink this world – and give more power to the elite in their bit to take us to the next step of Globalization. If this is allowed to go forward, thank yourselves for the theft of another North American institution which will not profit the lower or the middle class at all; in fact it will create an opportunity for foreigners to control the financial as well as economical situation in North America without being able to question anyone.