Banks to oppose LSE deal

CANADIAN banks are set to wade into the debate over the merger of the London Stock Exchange (LSE) and TMX, its Canadian counterpart, in a bid to scupper the deal.

Four banks are thought to be preparing to come out against the merger in a joint letter, but their opposition is complicated by the fact that they all own shares in a TMX rival, Alpha Group.

A public statement against the deal would inflame the controversy over what is already an explosive topic in Canada. The government of Ontario is currently conducting public hearings on the merger to address concerns that it could undermine domestic regulators’ control over one of the country’s major exchanges.

The banks in question are the National Bank of Canada, Toronto-Dominion, Bank of Nova Scotia and the Canadian Imperial Bank of Commerce. All declined to comment.