The Australian Consumer and Competition Commission has given the green light to the $5.3 billion merger of the Australian Stock Exchange and Sydney Futures Exchange.
ASX’s managing director Tony D’Aloisio said the merger proposal has cleared this important hurdle.
“We note the proposal still requires the approval of the Federal Treasurer and, most importantly, SFE shareholders,” he added.
SFE’s chairman Rick Holliday-Smith welcomed the announcement as an important step towards shareholders having their opportunity to consider the benefits of the ASX proposal.
In 1999, the ACCC opposed a merger between ASX and SFE, at the time, believing that the ASX and SFE were likely to compete in the future particularly given proposed legislative changes that were expected to facilitate competition.
"However, there is no evidence that these changes, which commenced in 2002, have actually had this effect,” ACCC chairman Graeme Samuel said.
"The ACCC considers the proposed acquisition is unlikely to substantially lessen competition given the strong evidence that the ASX and SFE are separate monopolies, and to a large extent do not compete already, nor are they likely to substantially compete in the future.
"The ACCC received no persuasive evidence that the current lack of competition between the ASX and SFE was likely to change in the foreseeable future.
"Further, both local and overseas experience suggests that it is very difficult for exchanges to attract trade in financial products away from other exchanges,” he added.
By Adam Parsons
