Access Economics deems ASX-SGX merger as beneficial to Aussie national interest
The operational marriage between the Australian Securities Exchange (ASX) and the Singapore Exchange (SGX) is in line with the national interest of Australia.
This according to the new report released on Monday by Access Economics, which declared that the $8.4 billion merger is wholly consistent with the principles of advancement for the Australian economy.
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The Access Economics also stressed that considerable benefits would be delivered by the giant merger, which is set to create the world's fifth largest equity exchange in terms of market capitalisation once completed.
The report was commissioned by the ASX in order to establish the actual effects of the merger on Australia's economy, which the ASX said should allow Australians to consider the pros and cons of the deal.
Penned by Chris Richardson, the Access Economics report maintained that the finalising the deal would further prop up the Australian economy and would lead to a healthier economic environment that all Australians are bound to benefit from.
Richardson said that the ASX-SGX deal would not harm the national interest of Australia at all as under the agreement, ASX would continue operating within the boundaries of the country and Australian government regulators would still exercise its powers over the merged entity.
The report also concluded that the deal was complementary, with both exchanges sharing almost equal executive functions, which should be further enhanced by the two stock markets' seamless business models and technology.
In considering a partner on its equity market activities, Access Economics said that picking out SGX is the mostly likely option for ASX since the Asian market is the main source of capitals flowing into Australian investment projects.
ASX chief executive Robert Elstone said that the 81-page report would be included in the document submission for the proposed merger, which would be reviewed by both Australian and Singaporean regulators.
The Australian government has already signalled its positive reception of the stock market merger and Federal Treasurer Wayne Swan has himself indicated that his ministry's final say on the deal would largely depend on the deemed long-term benefits of the proposal to Australia.
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