While exploratory discussions concerning a merger between Australian
Stock Exchange (ASX) and the New Zealand Stock Exchange (NZSE) have
progressed, additional work is necessary before determining the
merits of any merger. Draft material setting out the envisaged
framework for the possible post-merger operations has been prepared
to facilitate further discussions.
Any proposed merger is aiming to achieve the following objectives:
- the ability of Australian and New Zealand investors to seamlessly
trade the shares presently available on both markets. This is
expected to improve liquidity in stocks and facilitate capital
raisings for New Zealand companies;
- the continuation of an active New Zealand capital market;
- the maintenance of a full-service New Zealand office for New
Zealand companies;
- a harmonised regulatory environment; and
- an earnings per share positive outcome for ASX shareholders.
In the new year wider discussion and consultation about the issues
raised by the possible merger will be pursued in New Zealand. The
parties are now working to finalise the initial phase of the
discussions in the first quarter of 2001.
