Business relations between Canada and the UAE are being further tested after it emerged a Canadian provincial finance minister is poised to block the proposed tie up of the London Stock Exchange (LSE) and the Toronto stock exchange operator TMX because Middle East investors own large stakes in the UK operator.
Borse Dubai, the parent company of Dubai Financial Market and Nasdaq Dubai, owns 20.6 per cent of the LSE. If the US$3.2 billion (Dh11.75bn) merger with the Canadian company goes ahead the Dubai group will own a significant stake in the newly formed global markets operator.
Dubai would end up with an 11.3 per cent stake in the combined entity, the largest single holding and enough to trigger strict Canadian laws on foreign ownership, which state any stake over 10 per cent must get approval from the Canadian federal government.
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