There has been plenty of discussion and opinion in the media over the last day regarding the possible effects of the announced London Stock Exchange - Toronto Stock Exchange merger. Some of that discussion has focused on the potential effects of the merger on energy, resource and mining companies in Canada. So far, most observers see the proposed deal as positive for those companies.
For further information and analysis of the merger, please see our analysis here.
Many positive effects for energy, mining and resource companies have been cited. These include: the opportunity for Canadian companies to have enhanced access to international capital markets, the facilitation of additional cross-listings for Canadian companies, a higher international profile for Canadian resource and mining companies, and the further reduction of barriers to international investment generally.
Among the potential negative effects cited: the possibility that decision makers (already perceived by some as remote in Toronto) will be even more remote in London, and the need for Canadian companies to go to London to get deals done.
The merged exchange would have more than 6700 listings with a market capitalization exceeding $5.8 trillion, and would be the world's largest exchange for energy, resource and mining stocks.
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