All Japan news’s two largest stock exchanges from Tokyo and Osaka have received the regulators’ approval to merge, marking the creation of the world’s third-largest exchange based on turnover.
All Japan news Fair Trade Commission announced in a statement that the merger is not expected to substantially restrain competition. The commission has been working in the last six months with the case.
Tokyo Stock Exchange Group can thus continue with its plan of taking over Osaka Securities Exchange at Y480,000 per share. The transaction could be completed on January 1, according to the two stock exchanges. Following the deal, the Osaka bourse is valued at nearly Y130 billion ($1.6 billion).
“Considering the international competition in the industry, it was appropriate for the regulator to approve this,” said a top manager at Tokyo’s Nomura Research Institute.
The Tokyo bourse intends to buy between 50 percent and 66.7 percent of Osaka’s outstanding stock. The shareholders of the two bourses may meet this autumn or near the end of the year to vote on the merger.