SYDNEY: Australia's Treasurer Wayne Swan officially blocked the proposed merger of the Australian and Singapore stock exchanges on national interest grounds Friday.
"After long and careful deliberations, I have today made an order under the Foreign Acquisitions and Takeovers Act 1975 prohibiting the acquisition of ASX Limited by Singapore Exchange Limited," he said.
The ASX and Singapore Exchange Limited announced plans last October to create one of the world's largest and most diversified financial trading hubs.
But the proposal hit hurdles in Australia, where concerns over foreign ownership and Singapore's democracy and rights record have been raised.
"I have considered the proposal as it stands and changes that might be made to it, and whether such changes would reliably and durably address possible national interest issues," Swan added.
"However I consider that this proposal would need to be substantially and fundamentally altered in order for the national interest to be safeguarded.
"My decision was based on unambiguous and unanimous advice from the Foreign Investment Review Board that the proposed transaction was contrary to the national interest.
He added that he had "drawn on a broad range of stakeholder perspectives" over the five months since the deal was announced.
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