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Andean Exchange Project:Colombia and Peru plan to merge Exchanges

Colombia and Peru’s stock exchanges have announced plans for Latin America’s first corporate merger of bourses amid indications that the sweeping changes in market structures elsewhere is beginning to move into the region.

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The move is expected to speed up the activation of Mila, a separate Chile-Colombia-Peru tie-up that will launch direct trading after its test phase ends in March.

“The fusion of the Lima and Colombian exchanges will generate a strategic alignment in both countries, fortify our position in the capital markets of the region and complement the integration of markets,” said Francis Stenning, director general of the Lima exchange.

Read  MOU between the exchanges: Summary of MOU between BVC (Colombia) and BVL (Peru) by Mondovisione

The two bourses have signed a memorandum of understanding to create a new company, in which Colombia would have 64 per cent control and Peru 36 per cent. The companies that trade on the new enlarged exchange will have a combined market capitalisation of $378bn.

Mila, with 563 companies and an initial trading volume of $300m a day, would be Latin America’s second largest exchange by the combined market capitalisation of the companies on the bourse, after Brazil’s Bovespa’s, which has a total market capitalisation of $614bn.

If the proposal wins the approval of regulatory bodies and the two bourses’ boards, the merger could go ahead as soon as March.

Juan Pablo Cordoba, president of the Colombian bourse, said the merger would increase the value of companies and improve efficiency in an era of globalised capital markets.

“We will be able to develop new products, we will have a greater critical mass, not only in the stock market but we hope in all markets,” Mr Cordoba said.

The announcement comes just days after Mila announced a further delay in its testing phase, brought on by a stand-off between Peruvian lawmakers and the bourse over capital gains tax changes.

Mr Stenning said the harmonisation of tax and regulatory regimes across three countries had been a “big, complex” project.

Shares could be cross-listed on each participating exchange, giving investors in any of the three countries direct trading access to the partner markets.

Source: FT, 19.01.2011 by By Naomi Mapstone in Lima

Filed under: Chile, Exchanges, Latin America, News, Peru, , , , , , , , ,

Colombia Stock Exchange seeks regional integration

Colombia’s Bolsa de Valores (BVC) is actively looking to merge with other Latin American Exchanges and has been in talks with the Lima Exchange (BVL) as well as Panama’s (BVP), according to a New York based Equity Analyst covering exchanges. “Colombia is pushing for integration and has already signed several MOUs with Lima”, the analysts says. See also pervious FiNETIK news 04.08.2008.
One problem is that while the Columbian Exchange has talked to Lima, it has not talked to Cavali, Lima’s ClearingHouse. The Lima exchange owns 30% and if an offer for the exchange does not include Cavali another party could set up an other trading system.
Source: LatinFianance, 24.04.2009

Filed under: Central America, Colombia, Exchanges, News, Peru, , , , , , , , , , ,

Columbia and Lima Stock Exchange study possible alliance

The Colombia and Lima Stock Exchanges are exploring alternatives for a possible integration of their equities markets, which trade daily around USD 50 million on average. A statement by Colombia stock exchange affirmed that both exchanges have approached their respective authorities to study the feasibility of the project.

The two exchanges are now exploring options for possible integration while preserving local structures, as indicated by the Colombian market. Peru is the main destination for Colombian investments abroad, which is particularly concentrated in the energy sector. More information on the progress of these negotiations will probably be available by the end of the year.

The Lima Stock Exchange confirmed talks by executives of both markets, although it reported that it was premature to establish the manner and date by which the integration will take place. Roberto Hoyle, president of the Peruvian stock exchange, in a statement said:”We are very interested in the possibility of a future integration of our equity markets first and later the fixed income markets.

Source: Lima Stock Exchange, WEF, FINEXTRA 04. August 2008

Filed under: Colombia, Exchanges, Latin America, News, Peru, , , , , , , ,