(Bloomberg) — Nasdaq Inc. is in talks to buy Chi-X Canada, an acquisition that would put it in direct competition withTMXGroup 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 isnt public. The deal hasnt 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 NomurasJonathan Hodgkinson. Tal Cohen, chief executive officer of Chi-X Global, didnt 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 thats dwarfed by TMXs approximately 70 percent share of trading, the transaction would give Nasdaq a beachhead in a $1.7 trillion market, the worlds 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.