Tokyo, Osaka Bourses In Merger Talks

Japanese exchanges Tokyo Stock Exchange and Osaka Securities Exchange are seeking to merge and may extend talks to conclude the agreement.

Japanese exchanges Tokyo Stock Exchange (TSE) and Osaka Securities Exchange are seeking to merge and may extend talks to conclude the agreement, Reuters reports. The TSE may bid for some or all of OSE’s stock, while the rival exchange is proposing a share swap to merge operations.

A tender offer will allow the TSE to avoid any criticism it was trying to pull off a backdoor listing and circumventing its own rules on public offerings. A share swap will let the OSE remain a traded company. TSE may consider an IPO around the end of the business year on March 31 to boost the merger agreement.

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