The world's largest exchange for mining and energy stocks is in the making as London Stock Exchange and Toronto Stock Exchange are engaged in serious talks for a possible merger.
According to TMX Group, the operator of the Toronto Stock Exchange, it is in advanced talks to merge with the London Stock Exchange.
Both the LME and TSX are heavily weighted with mining stocks and a combination would create the world's biggest exchange for mining and energy stocks.
The TMX Group is valued at $2.99 billion, while the London group's value is around $3.25 billion.
The TMX Group said executives in the new company would be taken from senior leadership at both companies and be co-headquartered in Toronto and London.
The merger would require Canadian government approval and approval from provincial regulators.
TMX Group, which operates Canada's largest exchange, issued a short statement after shares were halted Tuesday amid reports of merger talks with the London Stock Exchange. TMX declined further comment.
Several exchanges have merged in recent years. Last October, the Singapore Exchange Ltd. said it would buy Australian counterpart ASX Ltd. for $8.3 billion in a merger of Asia's second-and third-largest trading operators.
The London Stock Exchange Group operates the London Stock Exchange and the Italian stock exchange Borsa Italiana. Major mining companies like Rio Tinto PLC and Xstrata PLC are listed on the London exchange.
