TORONTO - Experts say a group of Canadian financial heavyweights seeking to buy the operator of the Toronto Stock Exchange could be forced to sell off assets as they fight for approval from Canada's tough competition regulator.
University of Toronto business law professor Richard Powers says the Competition Bureau has forced groups to sell off assets in the past and could force Maple to sell as well.
The federal competition watchdog has asked Maple Group Acquisition Corp. for more information about its proposed takeover of TMX Group (TSX:X) before it can proceed with a review.
As it stands, if Maple buys TMX Group, it would control the majority of stock trading in Canada because some Maple members already own a TSX competitor.
Some critics have said that could create a virtual monopoly that could lead to higher fees, and lead to enforcement and transparency issues.
Canada's Competition Bureau has had no trouble playing hardball with some of the country's biggest companies, including slapping Bell Canada with a $10 million fine, and forcing Air Canada to suspend a joint venture with United Continental Airlines.
