Maple Continues Regulatory Process In TMX Bid

by Glen Shapiro, LawAndTax-News.com, New York

21 July 2011

Maple Group, the consortium bidding to take over the Toronto Stock Exchange operator TMX Group, has issued an update on the progress made in the regulatory process it must undergo in order to win control of the company.

On July 18, Maple received Supplemental Information Requests, indicating that the Competition Bureau requires additional information in order to complete its review of the proposed transactions. According to Maple, the consortium will continue to work with the Bureau in the usual course through its ongoing review.

On June 16 Maple filed its pre-merger notification filings with Canada's Competition Bureau, in spite of the fact that the LSEG transaction was still on the table, and favoured by TMX heads.

The update also notes that Maple has not received a request for additional information or documentary material in connection with the Notification and Report Form it filed under the Hart-Scott-Rodino Antitrust Improvements Act with the US Department of Justice and the US Federal Trade Commission. As a result, no further reviews are necessary by either organization, the group said.

Luc Bertrand, speaking on behalf of Maple’s investors, commented: “We are pleased with the progress we are making on regulatory matters related to our bid. We continue to believe our vision represents the best way forward for the TMX Group, its shareholders and all participants in the Canadian capital markets. Our ongoing discussions with TMX shareholders and stakeholders continue to be very positive.”

Were Maple's offer to be accepted by TMX and the deal approved, TMX shares would be exchanged for CAD40 in cash, plus 0.3016 of a share of Maple. According to the consortium, this values the deal at CAD3.8bn (USD3.95bn). When the LSEG deal collapsed at the end of June, TMX's CEO Tom Kloet conceded that, in spite of previous rejections of Maple's bid, TMX's Board of Directors would evaluate its options, including the Maple offer. However, there has been no further public announcement by TMX on the matter.

Maple was formed in reaction to the LSEG deal, by a group of pension funds and banks. It is composed of: Alberta Investment Management Corporation, Caisse de dépôt et placement du Québec, Canada Pension Plan Investment Board, CIBC World Markets Inc., Desjardins Financial Group, Dundee Capital Markets Inc., Fonds de solidarité des travailleurs du Québec (F.T.Q.), GMP Capital Inc., National Bank Financial Inc., Ontario Teachers' Pension Plan, Scotia Capital Inc., TD Securities Inc. and The Manufacturers Life Insurance Company.

Recommended