Nandini Sukumar from Bloomberg News looks at why the London Stock Exchange has withdrawn its bid for TMX Group at the eleventh hour, and what this now holds in store for the LSE.
At the last minute, the two exchanges revealed they won’t proceed with the friendly $3.4 billion merger because they didn’t get the required two-thirds votes cast by proxy ahead of an essential shareholder meeting, which would have determined if TMX was going to go ahead with the LSE bid, or look to side with Maple, a consortium of Canadian banks and pension funds vying to keep TMX in local hands.
GreySpark focuses on what’s next for LSE. They maintain that the exchange will now continue to try and execute strategy and protect market share, but will struggle in the process. Their position to stay independent is becoming less defensible.
In conclusion, the capital markets consultancy maintains that the LSE is most likely to be eventually acquired, with the most likely predator being Nasdaq OMX, following a cooling-off period.