Tuesday, April 5, 2011

ASX says Federal Treasurer opposes merger with SGX

KUALA LUMPUR:'' ASX Ltd (ASX) says the Federal Treasurer Wayne Swan has opposed the proposed merger of ASX with the Singapore Exchange Ltd (SGX) as it is contrary to the national interest.

The ASX said in a statement on Tuesday, April 5 that it was notified by the Foreign Investment Review Board that Swan 'is disposed to the view, under the Foreign Acquisitions and Takeovers Act, that the proposed merger of ASX and SGX should be rejected as contrary to the national interest'.

However, the ASX board said it was maintaining an ongoing belief in the need for ASX participation in regional and global exchange consolidation.

This, together with the business logic of the combination proposal announced with SGX on 25 October 2010, resulted in the ASX Board unanimously recommending the ASX-SGX merger proposal to ASX shareholders.

'In this context ASX will continue to evaluate strategic growth opportunities (including further dialogue with SGX on other forms of combination and co-operation),' it said.

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