Canada should have more say over the running of a merged TMX Group and London Stock Exchange (LSE), according to a report released by the Legislative Assembly of Ontario.
The all-party committee that undertook the report has no say over whether or not the proposed merger can go ahead, but its findings could influence the decisions of regulatory bodies in Canada that will need to approve the deal.
In the report, the committee warns that decision making power could be skewed toward London under the proposed deal, which currently would see the LSE control eight of 15 board seats.
‘This shift could result in decisions made that do not reflect the interests of Ontarians and Canadians as a whole,’ commented Gerry Phillips, an Ontario cabinet minister, as he submitted the report.
This issue could be resolved if TMX and LSE have equal representation on the merged group’s board, the report says. The report also calls for safeguards to ensure jobs and operations in Canada would be protected.
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