The Canadian consortium of banks and insurance companies knows as "Maple Group" has finally submitted its proposal to acquire TMX Group (Canada's largest stock and options exchange owner) to four provincial regulators. Regulators will now begin seeking public comment on the $3.8 billion deal.
Provincial and federal competition bureaus are going to have to approve the deal because if it goes through there would be a virtual monopoly on stock and options trading in Canada. And though this deal is great for shareholders, it will be much more difficult to ascertain whether or not it is in the public's best interest. There is, however, a good chance of it getting the green light under Harper's conservatives.
The conservative government under Stephen Harper, though known to have blocked some deals, especially Potash, will look more favourably upon this deal as it is not a foreign takeover, which can often be a political fire-storm.
Maple's $50 per share offer for TMX is superior to the previous offer they received from the London Exchange, and a breath of fresh air for many shareholders during the current economic and financial turbulence. With current shares of TMX trading well below $50, there is still a lot of upside potential for this deal should it go through.
Happy Investing : )
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