The board of directors of the Singapore Exchange has announced that SGX and ASX have entered into a landmark Merger Implementation Agreement (MIA) today to combine their listing, trading, clearing and settlement capabilities to create the second largest listing venue in the Asia-Pacific, with combined pro-forma market capitalisation of approximately US$12.3bn as of 22 October 2010.
The announcement was made at 0914hrs Singapore time and will create Asia-Pacific’s largest and the world’s second-largest base of institutional investors from over 10 countries, including Australia, Greater China, India and Japan.
This agreement is significant considering that previous merger attempts over the past decade between the two exchanges have failed due to squabbles over where the combined group would be headquartered: Sydney or Singapore.
This time, consensus was reached: both exchanges will operate out of both Australia and Singapore, and the ASX will maintain its Sydney headquarters and a local management team. Subject to regulatory approval, the combined group will have an international board comprising 15 directors from five countries, including four directors from the ASX. The four directors from ASX will be David Gonski, Russell Aboud, Jillian Broadbent and Alan Cameron, the current chairman of the board of directors of ASX Compliance.
Chew Choon Seng, currently the chairman-elect of SGX, is anticipated to become the non-executive chairman of the combined group. David Gonski, currently the chairman of ASX, is anticipated to become deputy chairman. Magnus Böcker, currently the CEO of SGX, will be CEO of the combined group.ALB
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