The Singapore Exchange (SGX) has been notified that federal Treasurer Wayne Swan is inclined to reject the proposed merger of the Australian Securities Exchange (ASX) and SGX.
In a statement yesterday, ASX said SGX was told by the Foreign Investment Review Board that Swan was "disposed to the view", under the Foreign Acquisitions and Takeovers Act, that the proposed merger should be rejected as contrary to the national interest.
"The ASX board maintains an ongoing belief in the need for ASX participation in regional and global exchange consolidation," the ASX said.
"This, together with the business logic of the combination proposal announced with SGX on 25 October 2010, resulted in the ASX board unanimously recommending the ASX-SGX merger proposal to ASX shareholders."
An ASX spokesperson indicated that if a merger did not proceed, the company would look at alternatives for cooperation with the SGX.
"We will continue to look at our options, including further cooperation with SGX," the spokesperson said.
