Friday 11 February 2011

Is Dubai the biggest beneficiary of the TMX, LSE deal? - Financial Post

While TMX and LSE officials basked in the merger limelight yesterday, far removed from all the events was the one man who may be the biggest beneficiary of the deal. Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, currently owns a 20.64% stake in the London Stock Exchange through his Borse Dubai investment entity.

If the deal is approved, Sheikh Mohammad will own 11.3% of the new entity, giving him a financial foothold in North America and helping raise Dubai’s profile in global financial circles. So it was no surprise that the emirate, which has never been coy about its ambitions to position itself as a global financial centre, has backed the deal.

Yesterday, a Dubai Borse statement gave the deal a big thumbs up: “We have been following these developments with interest. Borse Dubai has always been supportive of management initiatives to create shareholder value in the London Stock Exchange. We continue to support the management in their efforts to create both a stronger platform and a more valuable enterprise for stakeholders.”

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