SGX-ASX merger proposal ends after Canberra objects

The Singapore Exchange (SGX) today said it has terminated its merger implementation agreement with Australian Stock Exchange (ASX) after Canberra blocked the deal.

SGX and ASX entered into a merger deal on October 25, 2010.

But the Australian Treasurer Wayne Swan rejected the proposed merger of the two exchanges, saying the $8.7 billion deal was not in Australia's national interest.

Swan also pointed out that the SGX proposal was not a merger, but a takeover of Australia's financial sector.

Under the proposal, ASX would have become a subsidiary of SGX, added Swan.

Meanwhile, SGX said in a statement that Asia would remain the world's growth engine in the coming decades.

"SGX, as the Asian Gateway, is well-positioned to leverage on opportunities within Asia's vibrant and dynamic economies," said the statement.

"As Asia's most international exchange, we will continue to pursue organic as well as other strategic growth opportunities, including further dialogue with ASX on other forms of co-operation," the statement said.