The London Stock Exchange is to terminate its agreed merger with Canada’s TMX Group.
While the majority of both LSE and TMX shareholders voted in favour of the merger, which was first announced in February, the two-third approval threshold for TMX shareholders was not met. As such the merger will no longer proceed.
A stock exchange announcement says that at the general meeting to be held on June 30, it is intended the meeting will be adjourned indefinitely without the resolutions set out in such notice being put to vote.
Today’s announcement follows the news at the start of the month that the Maple Group Acquisition Corporation was looking to challenge the LSE’s offer for TMX.
The LSE officially filed its acquisition for its $3 billion (£1.8 billion) merger with TMX on May 18. The Maple Group launched its own bid of $3.7 billion the following day.
Xavier Rolet, the chief executive of the LSE Group, says: “We believe the merger would have been a unique opportunity for TMX Group shareholders to be partners in a truly international group, co-located in Toronto and London, focussed on growth and opportunity. We thank our own shareholders for their unwavering and overwhelming support in the past few months.
“Whilst the merger with TMX Group was an exciting opportunity for LSEG, we continue to see other significant growth opportunities across our well-positioned capital markets, information services, technology and post trade businesses. We remain committed to delivering shareholder value and we are looking forward to the future with confidence, momentum and a clear strategic path for building on our successes to date.”