CALGARY — The Alberta Securities Commission says it has published orders following a review of Maple Group Acquisition Corp.’s proposed takeover and merger of TMX Group (TSX:X) with the alternative Alpha trading platform and CDS clearing house.
The provincial regulator said late Monday it is done reviewing the proposal, but expects to amend its recognition orders to co-ordinate with other provincial regulators reviewing the $3.8-billion takeover bid.
It said it will wait for results of reviews by the Ontario, Quebec and British Columbia securities regulators to finalize its orders.
Approval from the ASC — the regulatory agency responsible for administering the province’s securities laws — comes on the eve of the one-year anniversary of Maple’s bid $50 per share bid, which has been drawn out largely due to intense regulatory scrutiny.
TMX threw its support behind the deal last October, shortly after a deal announced in February with the owner of the London Stock Exchange was defeated by shareholders. That means TMX has been wrapped up in takeover talk for more than a year.
Maple has set a new outside deadline of July 31 for TMX shareholders to tender their shares as it awaits the results of regulatory reviews.
The Ontario Securities Commission has set down draft orders, making stipulations on the deal that would govern aspects such as board composition, share ownership restrictions and pricing. A public comment period closes June 4.
Some market players had been concerned the deal would consolidate too much power in the hands of the insurers and banks and would allow them to charge unfair prices.
The OSC’s draft recognition orders, released last week, are key to the closure of the deal because the Competition Bureau recently said the orders could go some way to alleviate “serious concerns” it has with the deal. Securities regulators in B.C. and Quebec also must approve the deal.
The TMX Group’s subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy, among them the Toronto Stock Exchange, TSX Venture Exchange, TMX Select and the Montreal Exchange.
Maple Group is made up of Alberta Investment Management, Caisse de depot et placement du Quebec, Canada Pension Plan Investment Board, CIBC World Markets (TSX:CM), Fonds de solidarite des travailleurs du Quebec, National Bank Financial (TSX:NA), Ontario Teachers’ Pension Plan Board, Scotia Capital (TSX:BNS), TD Securities (TSX:TD), Desjardins Financial Group, Dundee Capital Markets (TSX:DC.A), GMP Capital and Manulife Financial (TSX:MFC).