ASX bid for SFE given the green light

Australia's competition watchdog yesterday approved a A$2.2 billion ($2.65 billion) plan for the Australian Stock Exchange (ASX) to buy smaller rival SFE Corp, creating the world's eighth-biggest bourse by market value.

The green light from the regulator, which opposed a similar plan seven years ago, propelled shares in both the Australian Stock Exchange (ASX) and SFE nearly 7 per cent higher as investors cheered the decision.

"It was not entirely unexpected, but the market likes to price in surety," said one analyst.

The proposal now needs approval from the federal Treasurer and SFE shareholders, with some analysts fearing opposition from the latter.