Australian government rejects Singapore bourse’s offer for ASX
08 Apr 2011
Singapore Exchange Ltd's $8.8-billion bid for ASX Ltd was rejected by Australian treasurer Wayne Swan, on grounds of the deal not being in Australia's national interests as it would leave the Australian bourse as a lesser partner in the merged entity.
''This isn't a merger -- it's a takeover that would see Australia's financial sector become a subsidiary to a competitor in Asia,'' Swan told reporters today in Canberra.
The rejection comes three days after Australia's Foreign Investment Review Board advised the government to reject the proposal.
''I am open to the right deal for Australia if it comes along, '' Swan said.
Meanwhile, Singapore Exchange co-president said the failure of the deal was not disastrous. He had offered a record premium for ASX to create the fifth-largest exchange in the world.
In February, the Singapore bourse's chief executive officer Magnus Bocker in a concession offered to the Australians offered more board seats in a bid to overcome opposition from lawmakers in Canberra.