Singapore Exchange wants to buy Australian

On Monday, the Office of the Singapore Stock Exchange, announced the offer to buy the Australian ASX LTD stock exchange for 8.4 billion Australian dollars ($ 8.3 billion).

According to Reuters, the merger of SGX and ASX is caused by the threat of alternative trading systems and should serve to build a new growth strategy and reduction of expenses. Such a step can lead to the emergence of the fifth largest trading operator.

"The price of an offer is lower than the historical record of the cost of ASX, but still good," said Mark Daniels, a manager from Aberdeen Asset Management, which owns the ASX campaign.

If the transaction takes place, it has yet to be approved by the regulatory authorities of both countries - it will be the first case of the merger of stock exchanges in this region, BBC British television and radio corporation reports.

In the event of a merger, the exchange will take second place in the Asia-Pacific region in terms of the number of companies that trade on it with their shares: they will be 2700. Only Hong Kong has a large number of customers in the region.

At the same time, at the market value, even after the unification, the new exchange will concede the exchanges of Hong Kong, Tokyo and Shanghai.

Nevertheless, the transaction will allow Singapore to significantly increase its status of a large regional financial center, and Australian investors will benefit from simplifying access to Asian markets.

“Today we are observing how financial flows change the direction from west to east,” said Magnus Boker, general director of the Singapore Exchange. “We will create a gate to the Asian capital markets.”