SGX not exploring or considering bid for Cboe Australia

Singapore Exchange said it’s not considering buying Cboe Global Markets’ Australian unit, refuting an earlier Australian Financial Review report.

“The speculation reported in the AFR article and other media articles is inaccurate. SGX Group is not exploring or considering an acquisition of Cboe Australia,” a spokesperson for the exchange said. Cboe Australia earlier declined to comment on the AFR report.

Cboe Australia’s future is uncertain after its Chicago-based parent company announced plans to sell the unit, alongside Cboe Canada. Australia’s financial regulator, which approved Cboe Australia’s listing market application in October in an effort to increase competition, is working closely with the parent company to find a suitable buyer.

Cboe Australia’s sale also challenges the regulator’s recent efforts to bolster the strength of Australia’s capital markets after a decline in public listings over the last few years. In addition to approving the operator’s application for a local listings market, it is also trialling a shortened initial public offerings process with ASX, the nation’s main exchange operator.

SGX previously made an effort to expand into Australia. Its attempted takeover of ASX was blocked in 2011, with the government at the time citing national interest reasons.

At its annual general meeting in October, Singapore’s bourse said it remained committed to driving organic growth, while flagging that it was open to exploring “strategic, value-accretive acquisitions aligned with its core strengths.” BLOOMBERG

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