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NDP Leader Jack Layton (Andrew Vaughan/Andrew Vaughan/The Canadian Press)
NDP Leader Jack Layton (Andrew Vaughan/Andrew Vaughan/The Canadian Press)

Streetwise

Layton would turn down TMX-LSE deal Add to ...

The TMX Group Inc.' s plan to merge with London Stock Exchange Group Plc wouldn't get federal government approval if Jack Layton has any say -- and polls say that the New Democratic Party leader may have a lot of say after Monday's federal election.

Speaking Friday as his party surges in popularity, Mr. Layton said he saw too much risk to approve the deal.

Given what's happening, TMX and LSE may be regretting their decision to take about four months to start the merger review process.

"We worry that Canadian business trying to access capital might have greater difficulty. As much as one might want to pretend that nothing will change, we find that hard to believe," he said, according to Reuters.

It's a harsher stance on the deal than in the days after the transaction was announced in February. At that point, Mr. Layton called on the government to make sure the plan was a "a merger of equals and not a takeover," but he did not speak out against the deal directly.

TMX and LSE have held off asking for the start of the Investment Canada review process as they campaign for support for the merger and put the final touches on their application. Once the process begins, it's usually about two and a half months from beginning to end for a complex transaction.

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  • TMX Group Ltd
    $87.16
    +0.18
    (+0.21%)
  • Updated July 20 4:19 PM EDT. Delayed by at least 15 minutes.

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