NZX may yet have a chance to get in on the global merger act with shock news last night that Australian Treasurer Wayne Swan plans to reject the Singapore Stock Exchange's bid to merge with the Australian Securities Exchange.
NZX may yet have a chance to get in on the global merger act with shock news last night that Australian Treasurer Wayne Swan plans to reject the Singapore Stock Exchange’s bid to merge with the Australian Securities Exchange.
Mr Swan expressed serious doubts about SGX's $A7.8 billion takeover of ASX and said he intended to reject the deal.
"FIRB [Australia's Foreign Investment Review Board] informed SGX that I had serious concerns about the proposal and that, subject to further consideration, I intended to accept the unanimous FIRB advice that the takeover would not be in the national interest," he said in a statement.
"It's important to note I have not made a final decision, and it would not be appropriate for me to make further public comments on an application that is still under consideration."
The Australian dollar fell sharply on the news amid concerns over the signals the decision sent about foreign investment in Australia, Australian media reported.
In response to Mr Swan's announcement, the SGX said it would consider other forms of cooperation with the ASX.
"We will continue to pursue organic as well as other strategic growth opportunities, including further dialogue with ASX on other forms of co-operation," SGX said in a statement. It also said it would consider appropriate responses to the FIRB.
SGX and ASX planned to merge in an attempt to cut costs, to counter growing pressure from alternative trading platforms and avoid being left behind as rivals in North America and Europe get together.
NZX had been criticised for declining to get involved with chief executive Mark Weldon saying he was not interested in taking part.
