Australia says no to SGX-ASX merger on grounds of 'national interest'

Updated On: Apr 06, 2011

Australian treasury minister Wayne Swan has said he is "disposed" to rule against the A$7.6b (SGD$9.9b) merger of the Australian Stock Exchange (ASX) and the Singapore Stock Exchange (SGX) following a recommendation from Australia's Foreign Investment Review Board (FIRB) that the takeover would not be in Australia’s national interest. 
Although Swan said he had not reached a final decision, the move raised fears among international investors of a fresh wave of economic protectionism in Australia. The move surprised the market, particularly since it came before the FIRB had ended its standard 30-day review period.
A merger with SGX would have create Asia's second biggest exchange by number of listings after Bombay, besting Tokyo and Hong Kong.

Related Article