Tokyo Stock Exchange Considers Merger With Osaka

Japan’s largest stock exchange operator, the Tokyo Stock Exchange (TSE), may merge with its domestic rival, as it

tries to stay ahead amid a wave of industry consolidation.

Japanese media said the TSE is considering a merger with Japan’s No.2, the Osaka Stock Exchange, and the two bourses would formally start talks soon.

Sources say a concrete move may take place around the fall, after the Tokyo Stock Exchange completes its planned listing.

Pressure on the Tokyo bourse to take action intensified last month, when Deutsche Boerse unveiled a deal to take over New York Stock Exchange Euronext to create the world’s largest exchange operator.

Other Asian bourses, such as the Singapore Exchange and Australia’s ASX, are also looking to grow bigger by combining operations.

With the average traded value of shares at around 18 billion dollars, the Tokyo bourse remains among the world’s biggest exchanges.

But by market value, analysts say the current value of the Tokyo exchange is closer to second tier exchanges.

Foto: NTD