Nasdaq Said to Be in Talks to Acquire Chi-X Canada Market

  • The Canadian business is being valued at about $100 million
  • Purchase would put Nasdaq in competition with Toronto exchange

Nasdaq Inc. is in talks to buy Chi-X Canada, an acquisition that would put it in direct competition with TMX Group Ltd.’s Toronto Stock Exchange, according to people familiar with the matter.

A deal valuing the company -- a division of Chi-X Global Holdings -- at about $100 million could be announced within the next two weeks, said one of the people, who asked not to be identified because the matter isn’t public. The deal hasn’t been finalized and could still fall through, this person said.

The owner of Chi-X Global retained Moelis & Co. to help explore a sale after receiving an unsolicited offer for the company, people familiar with the matter said in May. It also drew interest from Singapore Exchange Ltd., the people said at the time.

Nomura Holdings Inc. is the controlling shareholder of Chi-X, which also runs stock markets in Australia and Japan. Other investors include JPMorgan Chase & Co., Bank of America Corp., UBS Group AG, and Goldman Sachs Group Inc., according to company statements.

Linda Recupero, a spokeswoman for Nasdaq, declined to comment, as did Moelis spokesman Ari Cohen and Nomura’s Jonathan Hodgkinson. Tal Cohen, chief executive officer of Chi-X Global, didn’t respond to requests for comment.

Chi-X Canada runs a stock market that handled about 13 percent of Canadian equity volume during the third quarter. Although that’s dwarfed by TMX’s approximately 70 percent share of trading, the transaction would give Nasdaq a beachhead in a $1.7 trillion market, the world’s eighth-largest by market capitalization.

It also would strengthen an existing link between the U.S. and Canadian markets. Some corporations already trade on stock exchanges in both nations, including Nasdaq-listed companies like BlackBerry Ltd. and Pan American Silver Corp.

(An earlier version of this story was corrected to fix the size of Canada’s stock market in the penultimate paragraph.)

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