Australian-Singapore merger raises concerns
The merger between the Australian and Singaporean stock exchanges may possible cause a political backlash as some concerns were raised.
The Singaporean Exchange has declared its intent to buy all of the shares in the ASX for $AUS8.4 billion which is amounting to a staggering $US8.3 billion. Spokesman of the Federal Opposition’s Treasury Joe Hockey has stated that he is worried about the said bid. He stated that the said move is of great concern until proven otherwise that their major, general competitor is buying out their stock.
The party leader of the Greens, Senator Bob Brown stated that Singapore’s Government has no respect towards Australian values and ha made referrals to Australia’s rejection of Singapore’s wish to spare the life of Van Nguyen, a drug trafficker. Brown added that they should tell them nothing in the reverse fashion.
Independent MP Bob Katter has also stated his agreement over Brown’s statement and added that the stock is not for sale. He also stated that if the ASX is to be sold, then the High Court of Australia might be next to be put up on sale too.
The stock exchange of Singapore has made confirmation of the said plans on Monday. It was stated that the said deal is the firs merger ever between two market operators in the Asia-Pacific and has the possibility of lowering the costs for both exchanges.
Despite the many concerns, it was stated that Singapore will have more influence in a combined group. Mr. Bocker, the future chief executive of the merged company stated that the merger will not be a game between countries but a means to create more liquidity into their stocks, of finding ways to get more products. The Singapore Exchange and the ASX is to continue operating as separate entities with a merged company sitting over them. Bocker also added that the merger is just right for they are after creating a new company which will be important in the Asia-Pacific capital markets in the future.
