TMX Group Inc. (TSX:X) and London Stock Exchange Group say that they are prepared for a federal review of their proposed merger.

Industry minister, Tony Clement, confirmed Monday that his office will review the proposed transaction to ensure that it meets the “net benefit” test.

The two exchanges, which announced their merger plans last week, said in a statement that they “have prepared carefully for our work with Industry Canada as they review the merger agreement under the Investment Canada Act.”

“The companies have worked together to develop a set of undertakings that deliver clear benefits to Canada and Canada’s capital markets, while preserving financial regulation in Canada,” they added.

The undertakings set out in the merger agreement include specified levels of representation on the combined companies’ board for Canadian directors, and pledges to keep certain businesses in Canada, among other things.

The deal also requires shareholder approval and a host of regulatory approvals, too.

IE