Business World

Thursday 5 December 2019

Singapore bids $8.3bn for Oz bourse

The Singapore Exchange said yesterday it is making a $8.3bn cash-and-shares takeover offer for the operator of the Australian bourse, aiming to vault from second-tier stock market to leading Asian finance centre.

The combined exchange company would be the world's fifth-largest by market value and rank as the second-largest stock market in Asia by number of listed companies, the two exchanges said in a joint statement.

The deal aims to give both exchanges a better chance of prospering amid increased competition within Asia and from mega-exchanges in Europe and the US.

The Australian Securities Exchange, known as ASX, is set to lose its monopoly on operating a stock market in Australia in 2011 while Singapore has long lagged behind Hong Kong and Tokyo as a regional financial centre.

"The capital flow we see today is really changing from West to East," Singapore Exchange chief executive Magnus Bocker said at a news conference. "This will be the gateway to Asian capital markets."

The exchange operating company formed from the takeover of ASX would have a market value of $12.3bn and be responsible for some 2,700 listed companies.

Irish Independent

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