The board of directors of the Singapore Exchange has announced that SGX and ASX have entered into a landmark Merger Implementation Agreement (MIA) on Monday 25 October 2010 to combine their listing, trading, clearing and settlement capabilities to create the second largest listing venue in the Asia-Pacific, with combined pro-forma market capitalisation of approximately US$12.3bn as of 22 October 2010.

Singapore firms Allen & Gledhill and Stamford Law are acting as Singapore counsel to the Singapore Exchange (SGX) and the Australian Stock Exchange (ASX) in the proposed merger. Clayton Utz and Freehills are advising SGX and the ASX, respectively on Australian law.

If this merger succeeds, it builds on a trend of consolidation among the world’s exchanges. In 2006, the New York Stock Exchange acquired Euronext, while in 2007 the London Stock Exchange acquired Borsa Italiana. In 2008, Nasdaq and OMX merged and in 2000 OMX unsuccessfully tried to buy the London Stock Exchange.ALB

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• SGX-ASX confirms merger agreement (25 Oct 2010)