ASX and SGX as bedfellows unlikely to materialise

[suicidalpap]

Apr 6, 2011
Australian Treasurer indicates SGX-ASX deal is off
By Francis Chan , COMPANIES CORRESPONDENT


AUSTRALIAN Treasurer Wayne Swan has all but sounded the death knell for the proposed multi-billion dollar merger between the Singapore Exchange (SGX) and its Australian counterpart ASX.

In a shock announcement yesterday, Mr Swan said he is concerned the proposed S$11 billion (A$8.4 billion) merger is not in Australia's national interest, widely seen as a strong indication he is set to reject SGX's overtures.

Mr Swan, who has the power to veto foreign investment deals, said he had received advice from Australia's Foreign Investment Review Board (FIRB) about its concerns over the national interest.

He said: 'FIRB informed SGX that I had serious concerns about the proposal and that, subject to further consideration, I intended to accept the unanimous FIRB advice that the takeover would not be in the national interest.'

But Mr Swan added that a final decision has not been made and he was 'still open to further representations or information from the parties before coming to a final decision'.

The Singapore bourse operator caught on to that sliver of hope fast, saying it has not given up hope that the deal will come off.

 

[borom]

This is what happen in a democracy.
The Aussie minister will not even dare to think of sprouting rubbish like foreigners create jobs for locals or it cannot be helped.
What's the point of having an investment that will increase GDP but will not increase the welfare/income/quality of life of locals.
This is a clear illustration of the benefit of democracy, a multiparty system with checks and balances and proper accountability

 

[Char_Azn]

This is what happens when you try to work with an exceedingly racist and protectionist nation. You'd think that SG have learnt their lesson after the SIA Australia-US Route fiasco