Will we see another bid (merger) for the ASX? An $8.4 billion merger between the Singapore Exchange (SGX.SP) and the Australian Securities Exchange (ASX) was...

Nicholas Forsyth

Market Matters

Will we see another bid (merger) for the ASX? An $8.4 billion merger between the Singapore Exchange (SGX.SP) and the Australian Securities Exchange (ASX) was rejected by the Labor government in April 2011. The deal was designed to help the ASX gain a foothold in Asia and let the SGX tap into Australia's commodities markets. The deal basically valued the ASX at $48 a share through the cash and share offer by the Singapore Exchange, many people believe the deal was knocked back because of political egos. The ASX is now trading 23% below the bid and the ASX200 has rallied 18%, investors currently have no reason to thank the previous government. Buy the ASX (yield 4.8% fully franked, next paid in March) looking for a potential takeover. This is mixture of a trade / investment where I see 30% upside with little downside and a decent dividend approaching in March. We analyse the performance of the other 4 main respective exchanges around the world: (VIEW LINK)


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