Merger Activities Between Maple and Tmx

501 Words3 Pages
Briefly explain the benefit of and hurdles of Maple Group and TMX merger moves. In 14th May, 2011, Maple Group Acquisition Corp joint to acquire TMX as the competitor by LSE by 2.8 billion Canadian dollars. However, in 20th May, 2011, the acquisition offer was rejected by TMX with reason of “not reasonable”. The terms of acquisition are not better than what are provided by LSE. As consider the acquisition requirement by Maple Group will affect the majority ownership of TMX, Wayne Fox, the director of TMX said merger with LSE also was the better choice than with Maple Group. The rejection inspired Maple Group patriotic feelings, as the local company of Canada, they didn’t want the Toronto stock exchange be the part of London stock exchange company, therefore, Maple didn’t give up to acquire TMX. Until 30 June, 2011, LSE and TMX give up their merge plan as no more than half of the shareholders of TMX agree with the acquisition. When we analyse the reason why Maple persistent in merge with TMX, some economists said like: Moffatt Mike of Richard Ivey said, the merge was based on the patriotism which will add the stress on investors who invest in Canada. Robert Young of Liquidnet Canada said, the merge wave inspired the patriotic feeling of Canadians, like what did by Singapore stock exchange group. But some person didn’t agree with them because of almost 40% shareholders of TMX are not Canada citizen. Until July of this year, Maple Group finally successful merged with TMX by purchasing a minimum of 70% and a maximum of 80% at 50 per share of the TMX Group. This merge brings both benefits and hurdles. First, we look at the benefit to TMX group. This merge wave will increasing the international competitive of TMX, has the positive effect on developing its overseas market. Now, TMX is considering by purchasing “Direct Edge” of America to develop it operation
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