Ontario vows to review plans for TMX and LSE exchange merger

CANADA’S most powerful province yesterday vowed to launch a nonpartisan review of Toronto and London stock exchange plans to merge.

Ontario, whose capital, Toronto, is Canada’s financial centre, questioned whether London Stock Exchange’s planned acquisition of Toronto Stock Exchange parent TMX Group would benefit the province and the country.

Growing resistance has thrown into question whether the deal will survive an intense review process.

“If it’s an investment, great. If it’s a takeover, and operations move to London, that’s not what we’re interested in,” said Ontario finance minister Dwight Duncan

TMX chief executive Thomas Kloet said he takes the opposition seriously as Canada’s reputation on free trade and competition hinges on the deal.