The deal to restructure the Canadian trading landscape is inching ever closer, with news that two key regulators are set to grant their approval to the proposal by Maple Group Acquisition Corp. to acquire TMX Group Inc.
The collection of investment dealers and pension funds operating as Maple, along with TMX Group Inc. (TSX:X), said Wednesday that they have been advised that the Ontario Securities Commission (OSC) has approved final recognition orders covering Maple’s proposed acquisition of TMX Group, Alpha Trading Systems Inc. and Alpha Trading Limited Partnership and The Canadian Depository for Securities Ltd. (CDS).
As well, Quebec’s Autorité des marchés financiers (AMF), which has already published final recognition orders concerning Maple’s proposed acquisition of TMX Group and Alpha, is now also set to approve its proposed acquisition of CDS.
It’s expected that the OSC’s recognition orders, which set the terms under which the OSC will permit Maple to operate a combined exchange and clearing group, will be published by the OSC later today. Maple said it accepts the expected final terms of these orders. The AMF’s recognition order for the acquisition of CDS is expected to be published shortly, pending final review by Maple and TMX Group.
Speaking on behalf of Maple, Luc Bertrand said, “We are very pleased with the strong progress being made to secure the necessary regulatory approvals. We hope to receive the remaining approvals shortly and look forward to beginning the work to implement our vision for a more globally competitive exchange in Canada.”
The proposed transaction is still under review by the BC Securities Commission (BCSC), the Alberta Securities Commission (ASC), and the Competition Bureau. Although the Competition Bureau has previously indicated that it expects the terms imposed by the OSC will satisfy its concerns.
Maple also confirmed today that Kevin Sullivan, deputy chairman of GMP Capital Inc. will serve as a nominee to the Maple board from the independent investment dealer community. However, in order to satisfy a requirement in the final OSC and AMF recognition orders that the Maple bBoard include no more than 50% representation from the original Maple shareholder group, GMP has agreed to withdraw from the Maple investor group. GMP’s investment in Maple, which represented a less than 1% stake, will be taken up by the other Maple investors.
Maple’s offer to acquire TMX is open until July 31. It also aims to complete the proposed acquisitions of Alpha and CDS concurrently, or as soon as possible following the completion of the TMX deal.