LSE merges with Canadian TMX Group

The London Stock Exchange has agreed a merger with the operator of the Toronto Stock Exchange.

The London Stock Exchange (LSE) has announced a merger with TMX Group.

The two groups had formed a strategic partnership in 2009.

The merger will see a combined exchange comprising more than 6,700 companies.

Shares in the LSE rose over 10 per cent following the announcement.

The new business will be the largest exchange for commodities, energy and natural resources sectors.

LSE shareholders will own 55 per cent of the group.

Headquarters will be based in both London and Toronto.

LSE Chief Executive Xavier Rolet will run the group, and will continue to be based in London.

TMX Group Thomas Kloet will become president.

The LSE Chief Executive described the deal as "an incredibly exciting merger with considerable growth opportunities"