The Singapore Stock Exchange (SGX) has denied rumors that it is merging with the London Stock Exchange (LSE) after a possible 7.2 billion takeover was reported by the Daily Telegraph Thursday.
On July 11, the two exchanges signed a memorandum of agreement to allow cross-quotation of top stocks, likely fueling the rumors.
Both bourses have been trying to attract liquidity by increasing scale in recent years, with the SGX attempting a merger with the Australian Stock Exchange that was blocked by the Australian government, and the LSE unsuccessfully trying to merge with the Toronto Stock Exchange.
A combination of the two exchanges would have 1,807 listings with a total market capitalization of the local-currency equivalent of approximately $3.45 trillion dollars, according to the most recent figures from both exchanges, released in June. The LSE currently has 1,038 listings with a market cap of 1.78 trillion ($2.77 trillion), while the SGX has 769 listings at S$841.96 ($670 billion).
SGX has not engaged in any discussions with LSE on a potential merger, said the exchange in a statement today. However, we are open to collaborations and partnerships which may benefit our shareholders and the company.
The LSE could not immediately be reached for comment.
(OS)