Colombia, Peru, and Chile Stock Exchange Approve Merger
The merger will create Latin America’s second largest bourse
On 30th November, Colombia's financial regulator announced that the Colombian, Chilean and Peruvian stock exchanges have approved a merger into a regional holding company. The merger will create Latin America’s second largest bourse. The holding company is awaiting approval from the each country's regulator and will be based in Chile.
The Chilean stock exchange will control 40% of the holding company in exchange for the 100% shares of the Santiago Stock Exchange (BCS), Colombian stock exchange will take ownership of another 40% for 100% shares of the Colombian Stock Exchange (BVL) and the rest 20% will be held by Peruvian stock exchange for 100% shares of the Lima Stock Exchange (Grupo BVL).
Juan Pablo Cordoba, head of Colombia's stock exchange, said in a video, “The boards of the three countries have today approved this integration, so we are giving our all for this great achievement.” He also added, “This integration will mean moving borders and having a grander vision for the development of Colombia's and the region's capital markets.”
The joint statement also announced that the integration of the stock exchanges will be based on the average valuation of each stock exchange. The Chilean stock exchange is valued at USD 259 million, Colombian stock exchange at USD 248 million, and Peruvian stock exchange at USD 138 million.
The integration was being planned for a long-time and is expected to increase the number of debt issuers, attract international participation, increase regional investment in pension funds and up the volume of derivatives.