Rival bid hits LSE and TMX merger

Plans by the London Stock Exchange to merge with its Toronto counterpart have been hit by a rival bid from Canada's Maple Group.

The £4 billion merger deal with Canada's TMX would have created one of the world's biggest trading platforms and led to it becoming a dominant player in terms of mining company listings.

It would also have helped the LSE rebuff any takeover offers amid the ongoing consolidation of international stock exchanges.

However, in a bid to keep the owner of the Toronto stock exchange in Canadian hands and prevent it from becoming dominated by foreign interests, Maple has announced a £1.8 billion bid proposal for TMX.

The new offer will be welcomed by politicians and banks in Canada opposed to the merger with the LSE, but although the Maple bid is being assessed by TMX, it said it continues to back its existing merger partner.

If the LSE fails to complete the deal, it in turn could become a bid target as exchanges look to slash costs, with recent moves witnessing Germany's Deutsche Borse looking to buy NYSE Euronext, and the Australian government blocking Singapore's takeover bid for its bourse.