SGX Buying The Australian Stock Market
The big news today is that SGX, the Singapore Exchange is buying the Australian Exchange.
Even though the Ozzie Exchange is bigger in terms of size, it is fifth biggest while Singapore is eighth biggest, when comparing market cap and valuations, the SGX is stronger.
This creates the the fourth largest market in Asia after Tokyo, Hong Kong and Shanghai.
As usual after acquisition, the acquirer's stock prices goes down while the target goes up.
The acquisition is yet to be cleared by the authorities of both countries so it could still hit a snag.
For me, the weird thing is that they are buying the ASX after it is going to lose its monopoly over listing in Australia. Meaning that other exchanges can go to Australia and set up a rival exchange.
Anyway, I'm still keeping the SGX stock.
Sources:
1. SGX to take over ASX
2. SGX plans to offer $10.7b for Aussie bourse
3. SGX Bocker belies maranthon-man status in ASX deal
4. Singapore Exchange buys ASX for $8.3b
October 26, 2010 at 1:20 PM
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