ID :
174036
Fri, 04/08/2011 - 09:50
Auther :
Shortlink :
https://oananews.org//node/174036
The shortlink copeid
SGX AND ASX AGREE TO TERMINATE MERGER, AUSSIE TREASURER WAYNE SWAN BLOCKS MOVE
SINGAPORE, April 8 (Bernama) -- The Singapore Exchange (SGX) and the Australian Exchange (ASX) mutually agreed Friday not to pursue the proposed merger of the two bourses after the federal government blocked the US$8.4 billion deal.
"In these circumstances, the parties have agreed to mutually terminate the merger implementation agreement entered into on Oct 25, 2010," said SGX in a report published by the Wall Street Journal.
SGX said that it believed Asia would remain the world's growth engine in the coming decades.
"SGX, as the Asian gateway, is well-positioned to leverage on opportunities within Asia's vibrant and dynamic economies.
"As Asia's top international exchange, we will continue to pursue organic and other strategic growth opportunities, including engaging in further dialogues with ASX on other forms of cooperation," said SGX.
An ASX statement said: "ASX will continue to evaluate strategic growth opportunities, including engaging in further dialogues with SGX on other forms of combination and cooperation."
The ASX is seeking a new chief executive officer due to the planned
retirement of incumbent Robert Elstone.
Earlier Friday, Treasurer Wayne Swan said the deal offered little for Australia, and raised the risk of the country losing control of its clearing and settlement systems.
Swan has risked damaging the country's appeal to foreign investors, with the comprehensive rejection, which deals a major blow to the ASX's hopes of finding a partner against a backdrop of consolidation among exchanges globally.
"It became clear to me that it's a no-brainer that this deal is not in Australia's national interest," Swan told reporters.
The SGX deal is the second takeover to be rejected by Australia in the past decade. The last was in 2001 when Royal Dutch Shell was prevented from buying Woodside Petroleum.
Swan brushed off concerns over protectionism and political interference in his decision, saying the unanimous advice from the Foreign Investment Review Board (FIRB) was the major factor in influencing his decision based on the grounds that Australia would lose sovereignty over its clearing systems and compromise Sydney's goal to become a regional financial hub.
He also pushed back on views the merged entity would offer Australian corporates greater access to Asia capital flows and described other benefits of the deal as "overstated."
He noted that Australia was the world's 11th largest exchange by market value compared with Singapore, listed at 21.
"There's no clear evidence this deal would enhance operations of our exchange.
"The deal doesn't stack up, whatever yardstick you use. This is not a merger, it's a takeover that would see Australia's financial sector become a subsidiary to a competitor in Asia," he added.
"In these circumstances, the parties have agreed to mutually terminate the merger implementation agreement entered into on Oct 25, 2010," said SGX in a report published by the Wall Street Journal.
SGX said that it believed Asia would remain the world's growth engine in the coming decades.
"SGX, as the Asian gateway, is well-positioned to leverage on opportunities within Asia's vibrant and dynamic economies.
"As Asia's top international exchange, we will continue to pursue organic and other strategic growth opportunities, including engaging in further dialogues with ASX on other forms of cooperation," said SGX.
An ASX statement said: "ASX will continue to evaluate strategic growth opportunities, including engaging in further dialogues with SGX on other forms of combination and cooperation."
The ASX is seeking a new chief executive officer due to the planned
retirement of incumbent Robert Elstone.
Earlier Friday, Treasurer Wayne Swan said the deal offered little for Australia, and raised the risk of the country losing control of its clearing and settlement systems.
Swan has risked damaging the country's appeal to foreign investors, with the comprehensive rejection, which deals a major blow to the ASX's hopes of finding a partner against a backdrop of consolidation among exchanges globally.
"It became clear to me that it's a no-brainer that this deal is not in Australia's national interest," Swan told reporters.
The SGX deal is the second takeover to be rejected by Australia in the past decade. The last was in 2001 when Royal Dutch Shell was prevented from buying Woodside Petroleum.
Swan brushed off concerns over protectionism and political interference in his decision, saying the unanimous advice from the Foreign Investment Review Board (FIRB) was the major factor in influencing his decision based on the grounds that Australia would lose sovereignty over its clearing systems and compromise Sydney's goal to become a regional financial hub.
He also pushed back on views the merged entity would offer Australian corporates greater access to Asia capital flows and described other benefits of the deal as "overstated."
He noted that Australia was the world's 11th largest exchange by market value compared with Singapore, listed at 21.
"There's no clear evidence this deal would enhance operations of our exchange.
"The deal doesn't stack up, whatever yardstick you use. This is not a merger, it's a takeover that would see Australia's financial sector become a subsidiary to a competitor in Asia," he added.
