Arab Today, arab today canberra blocks australiasingapore bourse merger
Last Updated : GMT 14:02:48
Arab Today, arab today
Arab Today, arab today

Canberra blocks Australia-Singapore bourse merger

Arab Today, arab today

Arab Today, arab today Canberra blocks Australia-Singapore bourse merger

Sydney - AFP

Australian Treasurer Wayne Swan officially rejected a proposed merger of the Australian and Singapore stock exchanges Friday, branding it a takeover by the city-state that offered no benefits. "Let's be clear here: this is not a merger. It's a takeover that would see Australia's financial sector become a subsidiary to a competitor in Asia," he said. "It was a no-brainer that this deal is not in Australia's national interest." Swan said Australia's "economic and regulatory sovereignty over the ASX would be at risk" if the deal went through, making the country's bourse a junior partner. "Given the size and nature of the SGX, the opportunities that were offered under the proposal were clearly not sufficient to justify this loss of sovereignty," he said. The ASX and SGX announced plans last October to create one of the world's largest and most diversified financial trading hubs in a Aus$8.4 billion ($8.7 billion) deal. But the proposal immediately hit hurdles in Australia, where concerns over foreign ownership and Singapore's democracy and rights record were raised. Despite Swan's decision, the ASX remained convinced it should be part of regional and global exchange consolidation. "ASX will continue to evaluate strategic growth opportunities, including further dialogue with SGX on other forms of combination and cooperation," the company said. The Singapore bourse said it would look for other opportunities. "As Asia's most international exchange, we will continue to pursue organic as well as other strategic growth opportunities, including further dialogue with ASX on other forms of co-operation," it said. Swan's veto was the first time since 2001 that an application has been rejected by the Foreign Investment Review Board and the Treasurer was at pains to make clear that Australia still welcomed foreign investment. "The Australian government?s longstanding policy is to welcome foreign investment," he said. "Such investments are subject to review on a case-by-case basis ... which allows the Treasurer to prohibit a particular acquisition on national interest grounds. "It is important to emphasise that this occurs very rarely." Nevertheless, Australia's attitude could see the ASX fall behind its peers, analysts say, amid the climate of stock exchange consolidation. Last week, the Nasdaq and Intercontinental Exchange joined forces to make an $11.3 billion bid for NYSE Euronext, while the London Stock Exchange has proposed merging with the Toronto bourse. Matt Robinson, a senior economist at Moody's, said the decision "generates a potentially toxic degree of sovereign uncertainty regarding future merger and acquisition activity involving Australian companies". "Using Treasurer Swan?s rather eloquent wording, the only 'no-brainer' in this instance is the damage done to Australia's reputation as a destination for foreign capital." Swan said the Treasury, the Reserve Bank of Australia, and the Australian Securities and Investments Commission were all concerned about regulatory oversight when it came to SGX's bid. "It is important that we continue to build Australia's standing as a global financial services centre in Asia to take best advantage of the benefits of our superannuation savings system," he said. "I had strong concerns that the proposed acquisition would be contrary to these objectives." In coming to a decision, he considered the proposal?s potential benefits and implications for Australian businesses, investors and the community, and decided they were not enough to green-light the deal. "At the end of the day this takeover was more about growing Singapore's financial sector than Australia's," he said. "The deal just doesn't stack up whatever yardstick you use."

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today canberra blocks australiasingapore bourse merger Arab Today, arab today canberra blocks australiasingapore bourse merger

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today canberra blocks australiasingapore bourse merger Arab Today, arab today canberra blocks australiasingapore bourse merger

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Ryanair's O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

Ryanair's O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Youssra prepares for launching her  program

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday