The Colombian, Chilean and Peruvian stock exchanges have approved a merger into a regional holding company, they said, creating Latin America’s second biggest bourse.
The holding company, whose approval by each country’s regulator is pending, would be based in Chile, the exchanges said in a joint statement late on Monday published by Colombia’s financial regulator.
The Chilean exchange will control 40% of the holding company, Colombia’s bourse another 40% and Peru’s the remaining 20%.
“The boards of the three countries have today approved this integration, so we are giving our all for this great achievement,” Juan Pablo Cordoba, head of Colombia’s stock exchange, said in a video.
“This integration will mean moving borders and having a grander vision for the development of Colombia’s and the region’s capital markets,” he said.
The integration will take place based on an average valuation of each stock exchange of some $259 million for Chile, around $248 million for Colombia and about $138 million for Peru, the statement said.
The long-planned integration will increase the number of debt issuers, attract international participation, increase regional investment in pension funds and up the volume of derivatives.
“In this way, we can attain a greater development of the regional market through the standardization of business models and the creation of technological and operational synergies,” the statement said.
The holding company’s income growth will be 47% higher than the sum of growth for the three separate exchanges, the exchanges estimate.