Fresh Doubts Over SGX ASX Merger

There are fresh doubts over the SGX and Australian Securities Exchange (ASX:ASX) merger. Institutional investors have warned the government that the merger of stock exhcnages may compromise regulatory functions, such as compliance which includes checking listing rules and continuous full disclosure, functions which are operated by the ASX. Australian federal parliament has the final say, which must approve any single entity from owning any position more than 15 percent.

The merger will face scrutiny from ACCC, Australian Securities and Investments Commission (ASIC), Foreign Investment Review Board (FIRB), Reserve Bank of Australia (RBA) and Parliament.

The doubt over the deal hangs over the ASX share price which closed Thursday at $37.12 per share, much lower than the offer of $48 per share from the SGX.