JSE, Bond Exchange merger approved
4 June 2009
The JSE and the Bond Exchange of South Africa (BESA) have welcomed the unconditional approval of their merger by the country's Competition Tribunal.
"This decision, together with the approvals already obtained from the South African Reserve Bank and the Financial Services Board, means that all regulatory approvals required for the merger to go ahead have been obtained," the JSE and BESA said in a joint statement on Wednesday.
The final step in the process was the application to the High Court of South Africa to sanction the scheme of arrangement, in terms of which the JSE would acquire the entire issued share capital of BESA.
"The parties expect this application to be heard on or about 9 June 2009, followed by the registration of the court order by the Registrar in terms of the Companies Act."
If the scheme is sanctioned by the court, BESA will become a wholly owned subsidiary of the JSE on or about 22 June 2009.
Nicky Newton-King, deputy CEO of the JSE, said the JSE's intention would be to harness the areas of expertise of the two exchanges to deliver increased liquidity, increased functionality and a broader range of products and services to market participants, bond issuers and investors.
"Both the JSE and BESA believe that the merger will benefit the South African interest rate market," Newton-King said. "The integrated group will deliver a single exchange on which spot and derivative products are traded, and should prompt increased trade.
"The integrated entity will also be able to achieve improved common risk-management processes, critical to ensuring confidence in any capital market."
All BESA staff will become employees of the JSE, and BESA's operations will be moved to the JSE's Sandton, Johannesburg premises.
Sapa
