March 1, 2024

DealBook: Maple Group Wins Battle for Toronto Exchange Parent

The Toronto Stock Exchange.Mark Blinch/ReutersThe Toronto Stock Exchange.

The Maple Group, a consortium of Canadian financial firms and pension funds, acquired 91 percent of the shares in the TMX Group, securing its $3.7 billion buyout of the Canadian bourse.

The announcement ends a battle of more than a year for control of owner of TMX, the Toronto Stock Exchange. The consortium of Canadian financial institutions fended off advances from the London Stock Exchange, which withdrew its rival offer last year after failing to get shareholder backing.

The deal come as the world’s financial exchange industry face a slowdown in global trading activity. In the tough environment, companies have been looking to deal-making to squeeze out extra profits and cut costs.

“We are very pleased with the level of support that shareholders have shown for this transaction as well as for the integrated exchange and clearing business proposition we have put forward,” Luc Bertrand, who represents Maple’s investors, said in a statement.

Maple, whose members include Ontario Teachers’ Pension Plan and CIBC World Markets, paid $50 in cash and stock for each TMX share. The consortium now plans to buy the remaining stock in TMX and combine the exchange with Alpha Trading Systems and the Canadian Depository for Securities, two separate trading-based companies.

Tom Kloet will become chief executive of both Maple and TMX, according to a company statement. Chuck Winograd will serve as the two company’s chairman.

TMX’s shareholders will meet in September to approve the exchange of the final shares in the bourse for Maple stock.

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