TSE, Osaka Exchange Close To Merger Deal

A merger agreement between Japanese boursesTokyo Stock Exchange(TSE) andOsaka Securities Exchange Co.(OSE) is likely by Tuesday,The Wall Street Journalreports. The tentative deal comes before the planned integration in the fall of 2012 as financial regulators frustrated with the speed of negotiations pressurize the exchanges.

The merger talks have been prolonged due to sharp differences in opinion over the merger ratio. As per the proposal, the TSE's market value is 1.5 to 2 times that of OSE, whose market value is $1.4 billion. TSE may either buy 66.6 percent or 50.01 percent of OSE to carry out a tender offer that will allow the rival’s shares to remain listed. The two firms are expected to form a holding company and eventually set up several units specializing in areas including cash products, futures trading and self-regulation. TSE presidentAtsushiSaitowill be CEO and OSE presidentMichio YonedaCOO.

Click here for the story fromThe Wall Street Journal.