ASX confirms merger discussions but denies imminent deal
The Australian Securities Exchange (ASX) admitted on Tuesday that it was entertaining the possibility of merger with smaller exchange groups and talks were indeed being conducted leading to that eventuality.
The company, however, quickly noted that no deal has yet been realised as it denied that a viable business proposal is already being considered by ASX, currently being valued at about $6 billion in total market holdings.
ASX also refused to give out the names of the entities it has been discussing with regarding the merger talks, only giving assurance that it "is conscientious in evaluating its strategic and competitive options in that environment and has had discussions with a small number of exchange groups regarding possible business combinations."
The company that controls Australia's biggest trading exchange further stressed that discussions conducted so far have yet to lead into any disclosable transaction proposal.
ASX shares have surging in the past week as it gained up to 10 percent on Monday trading last week from $30.35 to a high of $33.91 but the company asserted that its rising share price was largely influenced by the market's strengthening activity, conceding a bit at the same time that media speculations also fuelled parts of the gain.
The company added that derivative trading volumes also contributed to the spikes on its share price, stressing that "exchange-traded markets are undergoing a period of profound structural change."
ASX gave assurance that updates on the merger talks would be furnished during its annual shareholders' meeting set on September 29.